article thumbnail

2023 Global Venture Reports were Gloomy, but there are reasons to be optimistic

VC Cafe

Many startups extended runway, cut costs and took on painful down rounds or expensive debt to avoid raising in 2023. The rise of generative AI is expected to affect every vertical: health, education, fintech, gaming – creating opportunities for startups. company closures, bad M&A deals) before it gets better.

article thumbnail

Advice for startups in a downturn (May 2022 Edition)

VC Cafe

Down rounds are coming. Multiples by vertical. While Q1 2022 looked normal, in venture, there’s a lagging effect in pricing, and deals that get announced in Q1 and even early Q2 2022 might have been signed in Q4 2021. Source: Pitchbook NVCA Venture Monitor. Justin Kahl, David George , A16Z. Look at the bright side.

article thumbnail

Lean Startups aren't Cheap Startups

Steve Blank

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.)

Lean 244