When it became clear that the public market had forever descended from the peaks of 2021, venture investors decided to break camp and head downhill as well, advising their portfolio companies to focus on lowering their burn because capital had suddenly become expensive.
Why the focus on cost-cutting? Because conserving cash is an easy way for startups to postpone fundraising, giving them more time to both increase their revenue and potentially wait for tech valuations to recover.
But new data indicates investor preference is moving akin to a pendulum: They wanted startups to scramble and change their focus from a “growth at any cost” mindset to becoming profitable at low cost when things went to hell, and now they’re already looking for gr...
