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Should Founders Still Raise in an Economic Downturn?

Dream It

Runway is a crucial indicator of survival that signifies your company’s future financial ability to sustain operations. If you cannot sustain operations for 18 months, cut your burn rate so you can extend your runway. Investors want to see you’re able to remain lean and adapt to changing economic circumstances.

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Gorgias’ valuation rises to $710M with $30M Series C for e-commerce customer support

TechCrunch

Even with all of that growth, the company is monitoring its cash burn rate in this new economic environment. The company’s goals early on were to “hire and grow in a sustainable way,” Lapeyre said.

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Spend management platform Teampay expands partnership with Mastercard, raises $47M

TechCrunch

“In today’s economic environment, Teampay’s software-led approach has proven resilient — as we saw in late 2020 to 2021, when the economy rebounds, Teampay benefits disproportionately through accelerated growth … We increased our debt facility for additional flexibility in uncertain times.”

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Q&A: How Verizon Small Business Digital Ready Can Help You

StartupNation

This program is preparing and connecting Metro Detroit Black-owned businesses to various funding resources to ensure their sustained success. The COVID-19 pandemic has imposed unforeseen challenges on entrepreneurs and further accelerated a shift to digital ways of working.

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Three Learnings for Startups after Big Tech’s Q3 Earnings Beatdown

Entrepreneur's Handbook

Even the growth rates of the cloud providers have begun to decelerate as customers scrutinize spending more carefully (true for AWS & Azure, GCP revenue growth accelerated slightly). You need to plan to achieve your targets COVID and a low cost of capital were a tailwind for more technology businesses than we realized.

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7 investors discuss why edtech startups must go back to basics to survive

TechCrunch

I would say the past few years have been more of an anomaly, and we are getting back to a more sustainable pace. The pandemic has not necessarily changed our thesis but has accelerated many of its underlying trends. billion in Europe thus far in 2022, 40% more than a year earlier, reports say).

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The Equity Seller’s Bubble of 2021 Part 2 • 2022 From a Startup Equity Seller’s to an Equity Buyer’s Market

Angel Capital Association

2022: The Aftermath In 2022 war, inflation, rising interest rates and a tougher economic environment–one not buoyed by historically low interest rates–brought an end to the long-term bull market in assets (the “everything bubble”), including startup capital. The exit markets fueling higher valuations are essentially closed.

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