Together With

Gm. Homescreen is closing in on 20,000 subs which is mind boggling to think about. As a thank you for reading and sharing the newsletter we are running a subscriber giveaway.

But we need your help.

The items we are considering giving away are:

1. AirPod Pros

2. Theragun

3. DJI Mavic Drone

4. Year-long subscription to SaaS tool of your choice

5. Something else

We've embedded an interactive poll later in the newsletter where you can cast your vote. Please weigh in on what tickles your fancy then go share the newsletter with a friend so we can hit 20,000.

FRESH POWDER

Looking at three funds that recently topped up their coffers.

HEALTHCARE

Demand is rising for abortion pills

The fall of Roe v. Wade has led to the rise of a murky online market for abortion pills in the US. The WSJ reported yesterday that a rash of sites in violation of FDA rules have popped up in recent months offering abortion drugs without a prescription.

It has cast a dark cloud on the legal abortion pill market, making it even more difficult for legit companies to establish a foothold.

Walking uphill both ways

Despite funding for telehealth startups reaching a record $18 billion last year per CB Insights, companies offering abortion pills are struggling to attract any VC money.

• Hey Jane, a three-year-old startup that offers pills by mail, has been the most successful thus far raising $3.6 million to date. A similar company, Choix, has raised just $1 million. Beyond those two, interest from capital allocators is few and far between.

But, according to the Guttmacher Institute, one in four American women will get an abortion at some point in their lives. And of that number, 54% are induced with pills.

So why is there such little interest from VCs?

One potential explanation Margaux MacColl of The Information highlights is the presence of vice-clauses that restrict where funds can deploy their capital. Vice clauses are set by LPs which often include institutions like pension funds or endowments that red-line investments in sex, alcohol, or even reproductive health.

• “Even some of the most progressive VC funds will not invest in abortion-related startups due to restrictions from their fund investors.” Carli Sapir, a partner at Amboy Street Ventures, wrote in a June blog post.

The rise of sites with names like Medside24.com and Onlineabortionpillsrx.com aren’t making it any easier. Despite a multitude of studies that have have shown medication abortion to be safe and effective, those buying from the shadier corners of the internet could face criminal charges along with health consequences from unregulated medication.

Bottom line: Demand is there for abortion pills, but as of now, the venture money is not.

CRYPTO

A peek behind the curtain

Good news doesn’t generally accompany leaked documents, that is, unless you are FTX. According to leaked financial docs seen by CNBC, FTX’s revenue skyrocketed more than 1,000% from $89 million to over $1 billion during 2021’s crypto boom.

Everyone kinda knew FTX had been killing it recently, but since FTX is a private company, it doesn’t have to publicly report its financials. Seeing the exact size of its revenue growth is eye opening.

• Perhaps even more remarkable than the topline growth is that FTX’s US arm generated a measly 5% of total revenue. As it makes headway towards becoming a household name in the states, that revenue could 10x again.

Yes, but…

Despite its unreal revenue growth, FTX still trails market leader Coinbase by a hefty margin. Coinbase notched $7.4 billion in total rev during the same period last year (though revenue cratered 64% in Q2 of this year.)

Bottom line: Now, FTX is navigating the same crypto winter as Coinbase while also fending off recent accusations from the FDIC that FTX misled investors into thinking their money was insured by the FDIC (it’s not). FTX may have had an unreal 2021, but storm clouds are brewing.

TOGETHER WITH MERCURY

80,000 startups can’t be wrong

We can all agree that 80,000 is a large number. The island of Alcatraz is around 80,000 square meters. There are 80,000 seats in MetLife stadium.

It’s also how many startups of all sizes rely on Mercury, a number that’s growing by the day.

Free checking and savings accounts, physical and virtual debit cards, free domestic and USD international wires...Mercury has all the features builders need with out any of the hassle.

80,000 founders trust Mercury.

Try your free customizable demo today to see why.

Disclosure: Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

QUICK HITS

Seed Round

Stat: The value of the public stock held by venture firms a16z, Sequoia, and Bessemer dropped a staggering 44% in Q2, with total losses equaling $18.3 billion. DoorDash, Snowflake, Unity, and Coinbase were among the biggest losers. Ironically, the firms recently changed their corporate structure to accommodate more long term stock HODLing of portfolio companies. Murphy’s Law wins again.

Story we’re watching: It’s usually TikTok that accompanies “international cybersecurity threat,” but a new threat has risen in the shadows: Janet Jackson’s “Rhythm Nation” music video. The 4-minute bop is making headlines for the danger it poses to certain laptop models. “Rhythm Nation” contains a vibration frequency that damages a specific type of hard drive manufactured in the mid-2000s. Can't wait to see which 2080's song causes cause all our Macbook processors to quiver in fear.

Rabbit hole: Stop using BeReal like Instagram (The Verge).

WHAT ELSE IS GOING ON

• Twitter is warning employees of potential cuts to bonuses amid a decline in sales.

• HBO Max is removing dozens of film and TV series that don’t resonate with older audiences in an effort to cut costs.

• DoorDash and Walmart are ending their 4-year partnership.

• Mark Zuckerberg has responded to the metaverse memes we all made of him.

PICK THAT PITCH DECK

"Not a fad" may have been a little off the mark for this now-public company founded in 2012.

MONDAY MUSIC

The best work jams to write, focus, and build your company to.

• Artist: SNBRN (Spotify)

• Playlist: Pixel Garden (Spotify)

• Song: Wave Machine (Spotify)

P.S. If you have any songs or artists you love, feel free to reply to this email and send ‘em our way.

LAYOFFS TRACKER

Notable layoffs this week

Wayfair: 870 people (5%)

Stripe: 50 people

FOUNDERS CORNER

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

🦄 15 Paul Graham essays to help you build a unicorn

🧰️ A highly curated list of 200+ SaaS tools across 30 categories.

💭 How can we develop transformative tools for thought?

PICK THAT PITCH DECK ANSWER

Peloton.