Adapting your pace to a changing race

How can early stage startups navigate the impending market? Start by understanding the reversal of these two trends — and adapt your pace.

Judah Taub

May 29, 2022

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In the recent bull market, two trends have emerged for startups seeking funding: a decrease in required key performance indicators (KPIs) and an increase in investment amounts. However, these trends are now reversing, and startups need to adapt. Here are key strategies to consider:

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1. Realize the market may not return to its previous state soon. Avoid building your business solely on optimism.

2. Determine your valuation based on current market conditions. Use publicly-traded companies as benchmarks and consider projected valuations for future funding rounds.

3. Prioritize efficiency over growth at any cost. Investors may scrutinize efficiency-related aspects of your business. Strive for capital-efficient operations.

4. Monitor the price-per-developer. As companies adjust hiring and departments, salary costs may decrease over time.

5. Embrace agility and adaptability. Swift reactions and seizing new opportunities are vital for success.

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In the evolving landscape, dedication to agility and the ability to adapt will be crucial for startups.

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Read more of Judah's article in Medium