"No one cannot predict how bad the economy will get, but things don't look good."
Clif notes:
- Plan for the worst ... cut costs within 30 days... get to Default Alive[0]
- Get money if you need it, and if you can
- With or without money you must survive 24 months
- VCs are people too, and subject to the same downturn. Adjust your fund raising expectations in the same direction. Expect lower valuations, lower rounds and many fewer deals.
- Disproportionate impact on international, asset heavy, low margin, hardtech, high burn, long road to revenue companies
- If you get a meeting, don't take that as a good sign, we still take a lot of meetings.
- Future fundraises will be much more difficult than they have been in the last 5 years.
- Don't expect more money until you demonstrate product market fit.
- If you planned on raising money in the next 6-12 months, we recommend changing that plan, or you may be tryng to raise at the peak of the downturn
- If you survive, and your competitor does not, you may pick up significant market share.