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Startup entrepreneurs: where to find funding in 2023?

Things are getting tough! The cash crunch is going to be brutal over the next 12 months. The power dynamic has shifted. VCs are back in control!

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Fundraising in 2023

Everyone has been doing bridge rounds for a year now.

Those who haven't yet will be doing so in the coming months.

Those who already have will be looking to raise from VCs.

In 2021 and 2022, every startup raised enough cash for 18 to 24 months. And there was a lot of fundraising activity.

Everyone is going to want to raise again in 2023 and early 2024. Except that VCs haven't opened the floodgates yet.

Yes, VCs have "dry powder." But they are going to take longer to deploy it. Only the best startups will raise in 2023! With valuations half of what they were in recent years! For SaaS, we were seeing 15x or more for the best ones. Now we're at 5x, or between 8x and 12x for the stars.

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When should you raise in 2023?

Startups with zero or average growth will try to survive, but it’s going to be a bloodbath. Pre-seed startups won't find as much funding anymore. Banks will only lend to the best.

My advice is to raise quickly if you have the metrics for it! Sooner than planned. Before everyone decides to raise at the same time. If you don't have enough traction: sell (if you can) or pivot quickly if you still have cash left.

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Good luck 🤞

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Need more help? Know that we support entrepreneurs in closing their funding rounds! Whether it's through VC, with a community ofbusiness angels or a bank debt raise.

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