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The past couple Years ago they were all about huge reviews and less about the need to ensure greater operational efficiency across the entire business. Even if you haven’t done this first hand as a startup founder or employee, the huge amount of money dispersed last year proves my point.
This year is a little different. Due to high levels of inflation, round sizes and prices begin to fall – or normalize.
As a CEO who successfully raised capital in Q4 last year and is actively raising another round, I want to share my insights and strategic advice with other founders looking to raise money in today’s volatile market.
What investors don’t want
To give you an idea of my data sample size, I approached approximately 60 investors to raise my seed and Series A rounds. About 95% of those investors are based here in the US (mostly in Silicon Valley) from a combination of private equity, investment banks and growth VC firms.
Based on my conversations, here are three things I noticed investors They are not Now interested.
Investors currently favor safety and security products, life-saving drugs and low-cost consumables, as these are essential products and services.
Financial startup trends
Lately, I have found that most investors are looking for reasons not at all To invest. Common pieces of feedback for founders are “your pitch is too loud”; “You have too much revenue per customer”; and/or “Your product has potential future regulatory risks.”
Businesses with high capital expenditure
If you have a business that needs to raise capital, or if you’ve gone a long way when EBIT is negative, you may find it difficult to find a willing investor. Now is the worst time to show big losses in short-term jobs.
Supporting new companies
VCs are now more apt to continue investing in their portfolio companies.
What are investors interested in?
Don’t panic, VCs they are. I am now interested in investing in a few areas.
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