When the market ended in 2021, it wasn't what it was, and it isn't going to be in the foreseeable future.
The market is not as down as it might appear. Entrepreneurs who have the right mix of purpose, business model and traction need to remember that there are still opportunities for funding.
Sky-high valuations and questionable investments have brought investors back to Earth. The return to discipline is demonstrated by a more stable volume of investor weekly pitch deck interactions. The pace was unsustainable and there was going to be a decline in funds invested. It isn't because there isn't any money left
The amount of dry powder floating around is enough to fuel startup investments for the next four years, but founders are finding it harder to raise money than they have in the past. Instead of demanding growth at all costs, VCs are taking a deep breath and waiting for the right time.
Unlike in 2021, unsuccessful early-stage decks today aren’t getting as much investor time as successful decks.
They need to remember that they have currency as well. The core strengths of the company should be the focus of the due diligence done by the founder.
The founder should always try to set up meetings with investors, but they should also try to reach out to other investors.
A founder is dependent on their investors as much as a product is. Some investor meetings are better than others.
The average number of investors contacted decreased from 69 to 60, but the number of meetings increased from 39 to 52. It's possible that early-stage founders are starting to practice due diligence on their end, vetting investors and bringing different expectations to meetings.
All Rights Reserved © 2024
