Gm. Ahhh the Friday before a long weekend.

We’d tell you to kick back and relax, but let’s be real, the startup grind and national holidays don’t really mix.

Regardless, try to take some extra time off and we’ll see you in the inbox with a special edition come Labor Day.

FRESH POWDER

Looking at three funds that recently topped up their coffers.

FUNDRAISING

RIP to WAGMI?

After raging at the web3 fundraising party for the past two years, VC firms are finally reaching for some Pedialyte. For a long time, web3 fundraising seemed to be one of the only venture capital sectors immune to a fundraising slowdown. But now it’s hit a brick wall.

• Crunchbase data indicates that just $719 million has been raised by web3 companies in Q3 of this year. And while the quarter isn’t over yet, it’s a safe bet that it won’t reach Q2’s $6.6 billion haul and will badly miss the peak $9.8 billion figure from Q4 2021.

What’s killin’ the vibes?

Part of the slowdown is a natural regression from the previous year’s fundraising bonanza, but regulators have also shown up to crash the party. The SEC is expected to launch a number of probes into VC firms who have invested in crypto exchanges, per a report from The Information.

• The key issue the SEC is looking at: Are tokens considered securities? And if they are, have crypto exchanges broken the law by improperly listing them?

That line of questioning has already brought the SEC to Coinbase’s doorstep. It launched a probe into the exchange in late July that is still ongoing. And even though the SEC hasn’t specifically named any VC firms as defendants in a lawsuit, they are likely to be caught in the crossfire given their heavy investment in the space.

One notable name to keep an eye on is a16z and the $2.2 billion web3-focused fund it launched in 2021. At the time, a16z looked like it was leading a market-wide charge into the sector. Now? Its commitment looks more polarizing than ever.

Bottom line: While its peers move in the opposite direction and WAGMI vibes hit an all-time low, a16z continues to be greedy. Whether fear or greed will turn out to be the correct course of action during this bear cycle, only time will tell.

SOCIAL MEDIA

Twitter is finally giving us an edit button

Poor spellers rejoice—after years of pressure from users, Twitter is testing out the long-awaited, much-maligned, and infinitely-debated edit button. For now, it’s only available to a limited amount of paying Twitter Blue subscribers so don’t freak out if you don’t have access yet.

Here are the deets

The major concern with introducing an edit button has always been that bad actors could use it to maliciously edit tweets after posting.

• For example, someone could tweet out “Like this tweet if you love dogs!” then change it hours later to say “cats.” Given how hot an issue misinformation on social media is right now, Twitter has been extremely cautious in opening this particular can of worms.

To address these potential issues, the new editing feature allows users to modify tweets “a few times” within a half hour of posting. An edited tweet will show up with 1) a label stating it has been edited and 2) an icon that viewers can tap to see older versions of the tweet.

Bottom line: Now that Twitter users have finally landed their white whale, may we humbly suggest a new campaign: it's time to ban threads.

QUICK HITS

Seed Round

Stat: National test scores for elementary school students are moving in the wrong direction. Reading scores hit their lowest levels since 1990 during the two years of the pandemic, while math scores dropped for the first time in the history of national testing dating back to the 1970s. The scores of lower-income students, who didn't have consistent access to educational resources like desktop computers or a quiet place to work, were especially impacted. Reversing the lost schooling time may take years according to researchers who study “pandemic achievement loss.”

Story we’re watching: Disney is exploring a QR-code-enabled shopping feature for its Disney+ app that lets users buy branded goodies straight from the app. While giving viewers the ability to snag a Baby Yoda doll while binging The Mandalorian will undoubtedly pad Disney's bottom line, the mouse has its eyes on an even bigger ecomm play. According to a WSJ report, Disney is in the early stages of building out a Prime-like membership program that bundles its streaming, theme parks, and merchandise into one offering.

Rabbit hole: The phenomenon of ball lightning and the Benedictine monk who first discovered it (ArsTechnica).

WHAT ELSE IS GOING ON

• Amazon’s Lord of the Rings prequel The Rings of Power debuted last night.

• Michael Saylor, the outspoken Bitcoin billionaire, is being sued for tax fraud.

• Nvidia and AMD have been banned by the US government from exporting certain advanced chips to China.

• Shopify warned its merchants that using Amazon’s one-click checkout service violates its terms of service.

GUESSTIMATE

Serena Williams’ 27-year career is coming to a close as she competes in her final US Open this week.

According to the GOAT, once she leaves the court behind she’s turning her focus to the venture capital firm she founded 8-years ago. One thing is for certain—she won’t be lacking any fresh powder.

How much prize money has Serena Williams won across her career (not including endorsements)?

FUNDRAISING FRIDAY

This thread is packed with nuggets.

Our favorite: Don’t fundraise in the summer or winter.

LAYOFFS TRACKER

Notable layoffs:

GoodRx: 140 people (16%).

Amazon: 353 people (<1%)

The Wing: 80 people (100%)

August saw layoffs decline for a second consecutive month. We could get used to this trend…

FOUNDERS CORNER

The best resources we came across this week that will help you become a better founder, builder, or investor.

🕸 10 useful websites that will teach you tech skills for free

👷 How to found a startup by working at one first

🤝 Forum on which companies are hiring in September 2022

🌐 Web3 Daily is a (free) newsletter that covers Web3 and crypto news in plain English

GUESSTIMATE ANSWER

$94.6 million.