Earlier today, TechCrunch+ published an open letter to startups from Index Ventures partner Mike Volpi with advice for startups that have different runway levels. In short, the more cash a startup has, the more leeway it will have to move aggressively in the current downturn and looming recession.
We caught up with Volpi last week to talk about his perspective on the market, the disconnect between venture performance and startup operating Results and what proportion of startups could be in reasonable shape to attract capital and grow despite a low-risk investment environment.
Check out Volpi’s full note hereand read on for our founder-focused takeaways from our conversation with the investor.
Cash rules everything
One claim stood out most in the investor letter: “Many companies are still meeting or exceeding their operating plans.” Given the mixed results in the public market, that statement was somewhat surprising.
We asked Volpi how many startups are meeting their plans, and while the investor was reluctant to accurately estimate a risky market he has limited insight into, he estimated that around 75% of startups meet — or exceed — their plans .
Startup operational plans vary in their level of aggression, so the “around 75%” figure might not be as optimistic as it reads, but that doesn’t matter. What matters is that most startups are still able to sell their goods and services, and we’re not seeing the kind of slowdown in startup growth that we might expect based on public markets.
Easier, Startups can still sell in the current market even if asset prices are falling.
If that’s the case, what are we supposed to do with the steady drumbeat of doom and gloom from investors on Twitter and elsewhere?
A bunch of startups might be in better shape than you think – TechCrunch Source link A bunch of startups might be in better shape than you think – TechCrunch