TechCrunch+ Roundup: 10 Questions to Ask in a Survey of Japan VC, AI, and Antitrust Investors

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The nature of my work isn’t cyclical – VC activity has slowed down dramatically this year, but I’m still quite busy.

According to the National Venture Capital Association, the deal count for early stage startups fell 52% year over year in the first quarter of 2023. When I saw that number, I couldn’t help but wonder: What are the VCs with all their free time these days?

For an early stage investor, this could be a great opportunity to learn a new language or travel. For a seed-stage startup, however, this is the time to find out how much value your investors actually provide.

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Despite the apparent imbalance of power, founders need to know whether the people they’re doing business with understand how to operate during a recession, says Navin Chaddha, managing partner at Mayfield Fund.

In this article, she looks at different ways that early-stage investors and board members can support early-stage teams, and includes a ten-question checklist that can help founders evaluate whether the VCs they’re talking to they are suitable.

While it might seem daunting for founders to question potential investors in today’s climate, remember that you need to build a zone of mutual trust along the way, he writes.

Thank you so much for reading,

Walter Thompson
Editorial Lead, TechCrunch+
@yourprotagonist

How to prepare a hardware startup to lift a series A

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In recent months, two pro-tech banks have gone bust, the Fed has hiked interest rates, and SaaS startups have begun focusing on long-term profitability instead of short-term growth.

The world we lived in, one that revolved around using cheap money to boost ARR, is gone, writes Champ Suthipongchai, co-founder and GP of Creative Ventures.

So how can a hardware company raise a Series A amid another new normal in this post-low-interest-rate era?

Concurrency problems in the age of artificial intelligence

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There’s a lot of excitement about current and future use cases for AI-enabled technology, but are companies boldly stepping into this new world and creating legal troubles along the way?

According to attorneys Henry Hauser, Shylah Alfonso and Chris Williams of the Perkins Coie Law Firm, using artificial intelligence to develop pricing algorithms, make purchasing decisions or establish claims could conflict with federal and state consumer protection and antitrust.

By implementing policies and processes that preserve human control and accountability, organizations can minimize legal exposure and avoid unintended consequences, they write.

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FedNow instant payments are about to unlock fintech investment opportunities

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Launched this summer, FedNow is a new initiative from the US Federal Reserve that will enable instant payments 24/7/365.

As the platform will offer lower transaction costs and real-time settlement, Fika Ventures managing partner TX Zhuo expects it will create new avenues for fintech companies of all sizes, the effects of which could be realized as early as next year.

6 investors explain why they’re optimistic about Japan’s startup scene despite the uncertain economy

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Global investment activity has cooled, but 2022 was a record year for the Japanese VC market, Kate Park reports.

He interviewed six investors who are active in Japan’s startup ecosystem to understand why fund managers are optimistic despite macroeconomic uncertainty, and asked about the advice they are offering to their portfolio companies:

• Gen Isayama, co-founder and CEO, World Innovation Lab (WiL)
• Tsuyoshi Ito, CEO and founding partner of Beyond Next Ventures
• Katsuya Hashizume, executive/partner, Beyond Next Ventures
• General Tsuchikawa, CEO, Sony Ventures Corporation
• James Riney, CEO and founding partner of Coral Capital
• Anis Uzzaman, founder and CEO, Pegasus Tech Ventures