Bootstrapped and lightly-funded SaaS companies looked pretty uncool the last few years when they didn’t raise big VC funding.
These practical startups are feeling better about themselves now.
- They aren’t at risk of shutting down their business when they can’t raise another round of funding.
- They aren’t laying off 20%-50% of their people like their over-funded startup peers.
- They aren’t massively changing strategies or resetting the company visions and cultures.
- Their employees aren’t leaving because their stock options are worthless.
- They aren’t beholden to financially driven boards to do unnatural things to survive or make unreasonable numbers.
The pain will continue for another year or two at tech startups that raised a big chunk of money in the last two years.
Most of the early startups that raised big funding on small revenues won’t make it. They knew about this risk they took when they raised big funding.
VC investment size, growth expectations, and valuations were just insane in 2021 in Silicon Valley and all the other tech hotspots.
The world is just getting more realistic about venture funding, growth plans, and likely exit scenarios. Not a bust, just less insane.
This change is causing all funded tech companies to reset their business plans and their expectations. Some have done this already, many haven’t.
This resetting is NOT happening in the steady, practical SaaS companies that are either breakeven or slightly profitable.
This is the time for these practical founders to take advantage of the turmoil with their funded startup peers.
Now’s the time to hire the best people and recommit to your long-term product and growth plans.
This happens with every pullback in the stock markets and with VC investment.
Reality wins in the long run every time.
