Does the Startup World Need a Reset?
A lot has changed in the past 6 months in the world of tech startups, and the way outsiders perceive the value of such businesses
I do not know if it is too early to start predicting whether it is a trend or an aberration, but I would bend slightly towards the former
A reset does not necessarily mean a crash. It means a pause, reflection, and resetting on valuations, timelines, wins/losses, funding lines, liquidity, and the emphasis on sustainability vs all out growth
What does this mean?
- start early, start small
- control costs & build a runway
- clean your cap table
- think hard who you want to raise from (diff between good and bad investors)
Building great companies during constrained capital markets leads to sustainable business models
And we really need more sustainable business models