For those looking for VC funding in the midst of what may turn into a recession, there are plenty of tactics to increase the chance of catching a VC’s eye.
what we know for sure is that businesses are adapting to bear the brunt of economic changes, real or imagined. Businesses are feeling the effects of fear, even while
Despite some healthy economic indicators, venture capitalists are still wary about allocating funds, because there is no telling what the future holds. With fewer VCs providing funding, fewer startups will be able to take their first mass-market breath. But entrepreneurs don’t stop being entrepreneurs just because there might be danger up ahead. For those looking for VC funding in the midst of what may turn into a recession, there are plenty of tactics to increase the chance of catching a VC’s eye and eventually, their wallet.The startup scene is all about valuations. Valuation is a key factor in earning VCs’ interest, as it predicts how much an investor could earn by investing in your business.
Adjust your products and pricing strategy according to the situation. It’s hard to make less profit, but it’s better than making none. The goal is to stay alive and keep your customers. You can raise prices again when your business is on a more steady footing. Negotiate with your vendors to get lower prices. They’re in the same spot that you are—trying to stay profitable in a downturn—so make it work for you. You can also eliminate nonessential services. Cutting costs instantly improves your bottom line and burn rate. Consider getting rid of benefits no one uses, an office that’s unnecessary in today’s digital workplace and other services you’re paying for that don’t provide value.
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