The Last Word: RevTech Ventures’ David Matthews on Conundrum Facing Venture-Backed Tech Companies

“It must be very tempting for the small tech companies to go on a hiring spree this year.”

David Matthews
Managing Director
RevTech Ventures

Here's "who said what" in Dallas Innovates Every Day.In a recent YouTube video, Matthews offers a quick RevTech Roundup on “The Conundrum of Venture-Backed Tech Companies.”

He notes that there have been over 100,000 recent layoffs by big tech companies, “All of a sudden there’s a bumper crop of available talent,” Matthews says. “But on the other hand, venture funding tightened by almost 60% last year, as VCs tightened their grip on their dry powder. The current message from VCs to their portfolio companies is: ‘Preserve cash and get to profitability as quick as possible.'”

“Valuations are dropping—that’s the driver,” Matthews adds. “And no one likes down rounds, especially VCs. VCs hate them just as much as entrepreneurs because down rounds make fundraising difficult for a VC firm, and they squeeze management fees.”

“So staffing up this year comes at great peril to VC-backed companies with large burn rates. And those tech companies that have found their way to profitability will be the ones that benefit the most.”

For more of who said what about all things North Texas, check out Every Last Word.

Get on the list.
Dallas Innovates, every day.

Sign up to keep your eye on what’s new and next in Dallas-Fort Worth, every day.

One quick signup, and you’re done.

 

R E A D   N E X T

  • North Texas has plenty to see, hear, and watch. Here are our editors' picks. Plus, you'll find more selections to "save the date."

  • The Dallas Regional Chamber's talent-attraction arm — Say Yes to Dallas — powers the event.  A roster of company sponsors expands career opportunities for HackDFW participants, says DRC's Duane Dankesreiter. “Last year we gave over 600 resumes to participating companies."

  • The extended deadline to apply for Fall 2022 is August 15. NPower Texas is the state arm of a national nonprofit offering free tech training to 18- to 26-year-olds and military veterans and spouses. 80% of the program's graduates find full-time jobs or continue their education—with an average salary boost of 384%. In March, philanthropist MacKenzie Scott donated $15 million to NPower, its largest donation ever.

  • Richardson-based Tech Titans has announced the newest additions to its board of directors. Tech Titans is the largest technology trade association in Texas, representing a quarter million employees through its 300 member companies. The organization says it strengthens the North Texas’ technology community and its reputation by acting as the innovation hub for entrepreneurs, universities, and corporations. The group recently hosted its signature event, the 2022 Tech Titans Awards, where it announced the 22 fastest-growing North Texas companies and honored the award's 43 finalists. The organization said it accomplishes its mission of "Technology lives here" by: Growing future tech leaders…

  • Engineer your tech-forward future.