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CB Insights, a leading research organization that tracks venture capital financings, recently released its report on the state of the venture capital market in 2023 and, most recently, the fourth quarter of 2023.
Long story short, it was a terrible year for raising capital. The global market was down 30% year-over-year to its lowest levels in six years. The U.S. market fell to its lowest levels in 10 years, down 21% in the last quarter alone. Gone are the days of “unicorn” creation (companies worth more than $1 billion), mega-sized financings, and excessive valuations. And investors can’t exit the investments they have already made in an anemic IPO market.
It is a pretty bleak picture if you are a startup raising capital today. So, what are you supposed to do to navigate these choppy waters? Buckle up and read on for useful tips based on my experience surviving markets like these.