The market has it. He has made a big change in recent months. The second quarter was the first time since the fourth quarter of 2020 that deal value fell below $77 billion, and last quarter was the lowest amount recorded for a quarter since early 2021. It has shown a significant reduction in how many investors there are. Funding companies, especially startups.
Due to this environment, funds cannot be the only source of capital for startups. As the market tanks, funds should be worth more to their startups because fewer deals are happening. It’s important for founders to understand this and leverage their VCs during these times.
As the deal pace slows, investors begin to focus on the company’s infrastructure and underlying business. Although a downturn can be seen as negative or challenging for a company, it can be a good time to review internal processes and see what needs to be improved, what is not working and what needs to be changed.
Giving founders capital is great, but it’s also important to give them all the tools they need to successfully build their company, money, or career.
Instead of focusing on the next round of funding, founders have the opportunity to focus on product, operations and revenue. This can be an opportunity to rebuild and rebuild.
Funds can do the same.
People first then profit
Having the right people in your corner when you first set up your fund is critical. For example, the Entrepreneur First program helps entrepreneurs who still have day jobs find potential co-founders. It supports founders and their early startup ideas. The aim is always to return a portion of the income to the company to grow its operations and base.
A variety of infrastructure VCs are being developed from networking and education to operations.
