Hey Reader,

Altitude Weekly Edition 005 is hot off the press from Cirrus Capital Partners 📰

Once weekly, we give you a bird's eye 🦅 view of the most exciting news and insights around...

• Successful Companies and Founding Teams
• VC, PE, M&A, and Credit Transactions
• Growth Metrics, Benchmarks, Charts & Data
• New and Emergent Technologies
• Productivity Hacks

Created for founders, bootstrappers, VCs, angel investors, marketers, technologists, executives, and operators—everywhere.

Let’s get into it:

​The Daily Habits of Famous Creative People​

How to be a creative genius: a longitudinal study.

Creative geniuses like Ludwig van Beethoven, Franz Kafka, Honoré de Balzac, W.H. Auden, and Victor Hugo had eccentric and unusual routines that contributed to their creative processes.

→ Beethoven meticulously counted 60 coffee beans for each cup.

→ Kafka worked through insomnia and hallucinations.

→ Balzac had a peculiar daily schedule, including wearing a white monkish robe

→ Auden used amphetamines as a "labor-saving device" for his work

→ Hugo had a diverse routine involving ice baths and meetings with his mistress.

These people were f*cking weird, but they knew that. They were unfazed by their idiosyncracies because they were the gateway to their creativity. Their unconventional habits were integral to their ability to produce renowned works. (Except maybe don't have a mistress?)

Maybe 5 am wake-up time isn't for you. Maybe for you, it's thrashing your head to "Thunderstorm" by AC/DC upon waking up.

The point is that it's YOUR habit and works for you.

​Your Complete Guide to Sales Rep Compensation - Part II: The Art and Science of SPIFFS​

Metrics and motivators can make or break your sales team. That's why SPIFFS might be the proper sales compensation.

SPIFFs are variable cash bonuses tied to specific business goals, metrics, or contests to motivate sales teams toward short-term objectives. Though they might boost performance, SPIFFs can be controversial; finance teams often view them as wasteful if not correctly managed.

So why might it be a suitable tactic for your team?

→ Purpose and Impact: SPIFFs aim to motivate sales teams, particularly the middle performers, by providing immediate rewards for achieving stretch targets or promoting new products. They are most effective when galvanizing a specific subgroup within the sales team rather than the entire organization.

→ Timing for SPIFFs: Ideal moments for implementing SPIFFs include the beginning of quarters to maintain momentum, during new product launches to encourage adoption, post-merger and acquisition phases to integrate new offerings, and in challenging economic times to keep teams focused.

→ Designing SPIFFs: Successful SPIFFs are simple, fun, and distinct from core sales metrics. They should not be relied upon to achieve fundamental business goals but rather to enhance performance in specific areas.

→ Strategic Use: SPIFFs should be viewed as tools for bridging transitional periods within a business, helping to maintain sales reps' engagement and retention during times of change or uncertainty.

​US All In: Female Founders in the VC Ecosystem​

These are uplifting numbers.

More shares of US venture capital (VC) dollars went to female founders in 2023. Female founders and co-founders secured a record high of 27.8% of the total deal value, although this figure adjusts to 22.8% when excluding OpenAI’s substantial $10.0 billion raise.

Despite the decline in deal activity within the broader venture market, the data indicates progress. There were 25.0% fewer deals for female founders. Additionally, the proportion of female check writers at the most prominent VC firms experienced a slight increase to 17.4%.

It's not the end of the forward movement, but it's progress, and progress is always a win.

​Harry's Inc. Filed for IPO this Week...​

Now, this is the story all about how...

Two friends turned a simple need into a market sensation, and why this IPO is more than just "cutting-edge." Please tell me you got this pun.
From grandpa's legacy to a billion-dollar journey, Harry's Inc. is not just about shaving—it's about carving a path to IPO glory.

This is why you need to put that art degree to use more than your MBA.

​Why You Should Craft a Powerful Personal Brand ​

It's the adage in every class marketing and advertising majors take (and Mad Men): People don't just buy products; they buy into an identity.

Personas or "personal brands" are so powerful they can sell millions. In this indie hacker's case, it drove 68.56% of his company, Lead Cookie's revenue. He did it all through referral partnerships and content marketing, which enhanced his business visibility and credibility.

Personal brands aren't short-term strategies but durable assets that remain valuable across various business ventures and market conditions.

So...

Invest in them. Stay consistent and be open to pivoting towards new opportunities as they arise.

​One year after SVB, the throne sits empty​

You know how it was popularly predicted that non-bank lenders would dominate?

As Californians say: Yeah, no.

A year after SVB's collapse, the venture debt market has remained without a clear leader. Banks have become safer; startups have since gravitated back to banks for cheaper loans despite SVB's venture debt portfolio, which once comprised 60%- 70% of the market.

Capital constraints and risk aversion led to minimal growth for non-bank lenders, and this gaping void has not been filled by banks or specialty lenders—which means it's an ever-evolving landscape in venture debt financing post-SVB.

​Bitcoin hits a new all-time high of $72,700, but one index warns we’re in ‘extreme greed’ territory​

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Bitcoin reached a new all-time high of $72,700.

→ This was driven initially by the approval of spot bitcoin ETFs and anticipation of an upcoming "halving" event that will reduce the new supply from miners.

→ Despite the current bull frenzy, the CoinMarketCap Crypto Fear & Greed Index indicates "extreme greed" at 89.12 points, suggesting the market may be nearing a top with potential price dips to follow.

→ The cryptocurrency has seen a 9.5% increase over the past week and a 50% increase over the month, with the total crypto market cap rising to $2.71 trillion, where bitcoin constitutes 52.7%.

Retail and institutional investors continue to be bullish on Bitcoin, with $2.6 billion inflows in the past week and $9.9 billion year-to-date, while Ether's inflows have decreased slightly. The upcoming bitcoin halving event in mid-April, which occurs every four years, is expected to impact demand and pricing, similar to previous cycles where bitcoin's price significantly increased post-halving before experiencing volatility.

​The Billion-Dollar Unraveling Of The 'King' Of Silicon Valley​

Word of advice: don't escape to a mindfulness retreat in Ibiza while facing lawsuits, especially from aggrieved shareholders and disputes with board members.

Ryan Breslow's fintech unicorn Bolt, a one-click online checkout tool, faced a dramatic valuation crash, legal battles, and internal disputes. Breslow was accused of mismanaging funds, including defaulting on a personal loan secured by Bolt's cash, leading to a $30 million withdrawal from Bolt’s account. After Bolt's valuation plummeted, shares were repurchased at a 97% markdown, suggesting a valuation of around $300 million. Since his wealth was largely tied up in Bolt, it impacted his ability to fund new ventures and repay loans.

His other ventures, including Prism, Movement DAO, and Love Health, encountered the same challenges, from unapproved loans to legal disputes.

I think this dude maybe doesn't know how to manage a company...I'm sensing a trend here.

Anyway, this is an excellent piece on Ryan Breslow's case and a cautionary tale about why you need to keep your financial and legal ducks in a row to prevent having to open your books for investigation.

And also how to not lose the respect of Silicon Valley.

​Wiz eyeing hundreds of millions of dollars in new funding at over $10 billion valuation​

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Ease on down to billions.

The Wiz is here, and his horn is extra shiny because he's set to secure hundreds of millions in new funding.

God I love hearing about unicorn startup wins.

Having already raised $900 million, Wiz, a cybersecurity startup, is engaging with investors like Thrive, Lightspeed Venture Partners, G Squared, Sequoia, and Cyberstarts. The Israeli firm, boasting $350 million in Annual Recurring Revenue (ARR) and serving over 40% of the Fortune 100, recently appointed Dali Rajic as President and COO to navigate its rapid growth and potential IPO.

After a $300 million Series D round last February at a $10 billion valuation, Wiz aims for $1 billion in sales and plans to expand its 900-strong workforce by 400 in 2024.

​Purchase Order Financing vs. Invoice Factoring: Which Is Right for You?​

Startups need efficient cash flow management.

When you're considering PO Financing vs. Invoice Factoring, here's what you need to consider:

→ PO Financing is great for businesses needing upfront capital to fulfill large orders, especially those dealing with tangible goods. It relies on the customer's creditworthiness and does not create debt or dilute equity.

→ Invoice Factoring suits businesses seeking immediate cash flow relief from unpaid invoices, which benefits companies with smaller transactions but higher volumes, including service-oriented businesses. It focuses on the creditworthiness of the clients and offers a simplified approval process without requiring collateral.

Both options offer unique benefits over traditional financing methods, like quicker access to funds and less emphasis on the business's credit history. But they can be more expensive due to higher fees or discount rates and, in the case of Invoice Factoring, might impact client relationships due to the control over receivables being handed to the factoring company.

Ultimately, it will depend on its specific needs, circumstances, and financial health. Carefully assess both options and consider the reputation, customer service, and fees of potential financing partners before making a decision.
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Until our next flight,

Ryan Ridgway & your friends at Cirrus

​cirruscap.com

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