The icy fundraising environment could change early startups’ DNA for the better

not much hope that Fundraising environment in 2023 would be better for startups than previous years. It looks like it will get worse before it gets better – even in the early stages, much of it has been quarantined so far.

But for growing companies that are able to build business models that reflect current conditions and are less dependent on venture capital to grow, the icy environment can become a thing of the past. good.

While some sectors need a lot of capital to build a viable business, like space and defense or manufacturing, most don’t – but that doesn’t stop companies from raking in tons of dollars. over the past few years, breaking records. But it’s better to just raise the smallest amount of money you need, which many startups are now discovering.

“I can’t tell you how many companies I’ve talked to are in a difficult environment because they’ve cornered themselves because of their fundraising and valuation history,” said Rachel ten Brink, a general partner at pre-seed-focused Red Bike Capital, told TechCrunch. “They started in 2017 and grew their revenue 100 times. It’s a SaaS company; What are they doing from here?

But now that funding isn’t easy to come by, early-stage founders may have a chance to avoid some of those pitfalls.

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