Layoffs: Even as big tech giants like Meta, Twitter and Amazon are laying off employees to cut costs, a venture firm launched in 2018 is offering $100,000 to those sacked recently for beginning thier startups. Through a programme called ‘Funded Not Fired’, Day One Ventures will write $100,000 checks (over Rs 80 lakh) into 20 startup teams by the end of the year.
According to a report by Tech Crunch, top businesses from the cohort will then get follow-up capital from Day One Ventures commitment to lead their pre-seed round with a $1 million check. In total, the firm is allocating at least $5 million (and at most $10 million) from its $52.5 million fund to back founders spinning out of turbulent startups.
“With ‘Funded, Not Fired’, you’ll get your first institutional angel check. Over the next month, we’re selecting 20 founders to invest in and support. Whether you have an idea already or not, let’s get to work… We are investing $100k into 20 companies using a standard YC-style SAFE of $2 million post-money cap, and pro-rate,” Day One Ventures said on its website.
It added that being laid off can feel discouraging. But being laid off demonstrates that your talents clearly are bigger than your previous employer could see: it’s time to take the entrepreneurial plunge and start your own company. “We are going to invest in the top 0.01 per cent of laid-off tech talent.”
As an application process, the company said it has three steps — Submitting an application form by November 25 (at least one co-founder must have been recently laid from a tech company to apply); Interview between November 28 and December 6 (top applicants will have two Zoom calls, each with one person from Day One Ventures’ team); and Final assessment (finalists will participate in a 10-20 minute Zoom call with Day One’s entire team between December 7 and December 16).
Day One Ventures said that in six months, it will pick the top companies and lead their seed rounds with a $1 million check.
It also said, “You’ll (startups) have weekly check-ins with our team. We’ll pair you with subject-matter experts and top entrepreneurs as advisors who will host office hours and help you hands-on to build your company. You’ll be introduced to the top VCs in the Valley and world to continue fundraising. For B2B startups, we’ll help you get in contact with customers from our portfolio and beyond. For B2C companies, our team will help you build viral product mechanics that will help your product grow.”
Last week, on November 9, Mark Zuckerberg, CEO of Facebook’s parent company Meta Platforms, confirmed the layoffs and said the company has decided to reduce the size of its team by about 13 per cent and let more than 11,000 employees go. It came days after another social media giant Twitter, under the new ownership of Tesla CEO Elon Musk, let go of 50 per cent of its workforce to cut costs.
Amazon is also planning to lay off about 10,000 people over the next few days, according to reports.
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