Fundraising in difficult times

Today’s market situation can have an impact on startups, you can think of:

- Decreasing customer spending
- Harder investment criteria
- Less startup investments
- Lower valuations

Here are some tips on how to react when it comes to valuation, timing and investments.

(1) Leave your wallet at home
VCs’ will focus on startups that can demonstrate a path to profitability, and put startups that are dependent on high marketing costs aside as capital allocation tightens.
-> Focus on improving your cash flow with a lean approach: no unnecessary expenses, and wait with hiring as it is a fast track to burning money.

(2) Timing is everything
VC’s and founders can expect smaller round sizes, fewer and smaller IPO’s, and lower valuations. Our advice is to reserve more time for funding of your company, as smart investors will look at downturns as an opportunity to find great investments. This is in their interest, not in yours.
-> Our motto is: find and make the right deal!

(3) Alive and kicking
Keep your startup alive by increasing your runway and grow sustainably, meaning having cash to spend during a longer amount of time, let’s say 12+ months instead of 6-12 months.

Stay focused and positive!