In times of economic uncertainty, founders need to know what makes VCs tick
The last few Months have arrived at a start-up community where it hurts – accounting. With inflation at record highs, a recession on the horizon and threats of a long winter, it’s becoming increasingly difficult for giants like SoftBank to get VC money. So where does that leave startups relying on that money to get to the next level of their career?
TechCrunch sat down with investors spanning different stages of development and industry sectors, to hear how they view today’s funding environment alongside mobility and climate tech, and what their red flags — and green flags — are for startups looking to raise another round.
Most investors we’ve talked to say there’s a definite pullback and general conservatism when it comes to funding, with many VCs being too deliberate in their due diligence.
“There’s no doubt that investors — especially late-stage investors — are largely sitting on their hands, taking their sweet time and choosing carefully,” said Nate Jarrett, general partner at Manive Mobility. “The fundamentals of venture investing haven’t changed, only the pace.”
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