News and Announcements
Signs of An Investor’s Market
- Published December 14, 2022 6:22AM UTC
- Publisher Osama Hassan
- Categories Capital Raising Tips
We are now in an Investor’s Market.
This is what has changed since last year:
1) There’s been a massive correction in the public markets which is now filtering to private markets
2) There is a potential recession looming and it seems unlikely that central banks will intervene in the short term
3) There are a number of other issues like inflation and the current geo-political situation that are impacting investor confidence
Despite there being an incredible amount of venture capital and private equity over the last few years, we’re now facing a difficult environment for raising money:
– The previously popular method of creating private valuations based on comparable public companies is quite unpopular right now
– Confidence of investors has shifted
– Some investors are pulling term sheets and not following through on funding commitments
As a founder, if you’re looking to establish what you should focus on in current market conditions, be sure to check out (links to these articles are in the comments section):
Adapting to endure – Sequoia Capital
A Framework for Navigating Down Markets – Andreessen Horowitz
YC advises founders to plan for the worst – Y Combinator
The upside of a downturn – Lightspeed Venture Partners
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Click here to view the original Linkedin post.
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