For first-time founders, the gyrations of the stock market, the resulting correction in public market tech stocks, and the inevitable impact on private company fundraising might seem disheartening. And the past few weeks of geopolitical challenges only added to the bleak scenario.
As an entrepreneur and venture capitalist who has lived through two downturns (the post-2000 internet bubble bust and the post-2008 financial crisis), I know that entrepreneurial innovation is always alive and that company-building is a marathon, not a sprint.
Here are a few of my favorite tips for founders looking to raise capital and build a strong inception-stage company.
- Capital raised and valuation should match company stage;
- Founder dilution and investor ownership are part of a long game;
- The founder-investor zone of trust is key;
- Great companies are often created in tough times.
I am an optimist, and while our current times may seem intimidating, the founder DNA of thinking big and aligning with societal transformation trends always wins. Investors like us are lucky to have been along for the ride. So here’s to the dreamers and to thinking long-term so we can continue to change the way we work, live, and play.
Full article available on TechCrunch.