In the ever-changing world of startups, the relationship with your funders stands as a cornerstone of your venture’s growth strategy. Amidst market uncertainties and a discernible shift towards investor-centric terms, establishing a robust relationship with investors is more crucial than ever.
The market continues to exude skepticism, shadowed by the recent downfall of Silicon Valley, a hesitant IPO market, and ongoing layoffs in major tech companies, including most recently DocuSign and Grammarly. This scenario prompts a critical question: Is venture capital undergoing a major transformation?
Caterina Papadakos, a Partner at Fort Capital, noted during a discussion hosted by William Johnson, “The End of VC As Founders Know It“, that what we’re experiencing is a cyclical economic phase, poised for a rebound.
However, the landscape for both investors and entrepreneurs has undeniably evolved, necessitating a re-evaluation of how startups engage with and secure capital. This new era demands a strategic approach to fostering relationships with funders, emphasizing the selection of partners who align with your vision and values. Entering into a financial partnership means intertwined paths until a liquidity event and those obligations are fulfilled.
It’s important to recognize that venture capital isn’t the sole avenue for growth. Brianna Blaney, Co-Founder and CEO of Pocketed, shared in this same discussion their strategy of bootstrapping via customer revenues, highlighting the myriad paths a startup can take. Options range from grants and debt financing to customer revenues and venture capital, each with its unique implications for your business relationships.
Selecting the right investors is about more than just capital; it involves leveraging their networks and expertise to fuel your growth. Conducting thorough due diligence on potential investors is as critical as it is for them to evaluate your business.
For those eager to dive deeper into building these pivotal relationships, the Vancouver Entrepreneurs Forum is hosting a Reverse Pitch event on February 20th.
This unique opportunity places investors in the hot seat across three categories: Grants and Non-Dilutive Funding (Mitacs, BDO, CICE, Genome BC), Early-Stage Angel to Seed (Nimbus Synergies, Rhino Ventures, Startup TNT Capital, Brightspark Ventures, Spring Activator), and Series A and beyond (InBC, Pender Ventures, Vanedge Capital, Deloitte Ventures, Telus Ventures).
This will be an invaluable opportunity to connect with potential partners who can play a significant role in your venture’s success. Register today to explore your next most important relationship.
Michelle Sklar is the Head of Venture Growth at entrepreneurship@UBC and a Board Member of VEF.
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