Global perspective
Before 2024, the venture capital lifting will continue to be difficult. We expect many companies to compete for fundraising in 2024. There are a large number of companies in progress which have not lifted since 2021 and will have to raise more capital. VC companies have prioritized their portfolio companies and are starting to conclude new transactions.
However, in what could be a positive sign for the future, business investors have indicated that they could consider expanding their activity in the corporate venture capital space. In a recent Ey Pulse survey, 93%of CEOs said they planned to increase (70%) or maintain (23%) to invest in corporate capital funds in 2024, which widens The capital pool and could cause a deactivated ramp thanks to mergers and acquisitions.
The massive upcycle which has fueled the venture capital market in recent years has facilitated entrepreneurship. It is not – and certainly does not become easier. Investors take the time to know the founders, their markets and their plans for the future. That said, large companies with resilient entrepreneurs and clear routes to growth and profitability will continue to find a way to follow.
Advice for entrepreneurs navigating fundraising in this environment:
- Without immediate rebound in sight, the founders will have to change speed and focus on taking care of themselves and their teams. Provide the right level of emotional support. It is a marathon, not a sprint, and it requires physical and mental endurance to compete on a crowded market and in difficult times.
- Be open to different views on assessments. The markets may have changed considerably since you have raised a part of capital for the last time. Do not let it hinder the fact of lifting a turn, doing a strategic deal or everything that allows you to fight another day.
- Continue to request solid advice and advice from investors, members of the board of directors and other entrepreneurs.
Despite the challenges of the last two years, this is not the end of entrepreneurship. But as the ecosystem works through a drop cycle, which we have not seen for some time, entrepreneurs who are ready to do the hard work to carefully manage their capital and create a profitable and resilient business will be those which stand out, attract investments and finally succeed.