Investment climate change

Recently, I have been communicating a lot with investors and start-up teams, I have noticed trends that have arisen due to the economic crisis.

Investors

What is noticeable from investors:
1. Reluctance to invest in a project that has not yet started its sales
2. The desire to return the money from the income of the project, and not its resale or IPO

Some even complain that instead of innovative (and therefore very risky) projects, they invest in traditional businesses with a long history and long contracts. Frequently wishes “go to self-sufficiency and then come to us”.

The valley of death has expanded. If earlier it was “show the dynamics of growth of the user base”, now it’s already “show the dynamics of growth of your sales and business margins”, which increases the valley by at least a few months.
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On the other hand, only those investors who will be able to find a way to invest in innovative projects and not to throw money away to the wind will receive their 1000%.

Businessmen

The role of entrepreneurs, leaders, visionaries has grown even more. Previously, in web startups, the role of technical specialists (rapidly changing technical environment, innovations, new platforms and approaches) was very important, then now business leaders who can manage a company in a rapidly changing business environment (economic crisis , changing consumption patterns, changing markets).

There are a lot of teams that can make the technical part of new projects. There are not enough people who will supply them with money, think up what exactly needs to be done and how to earn money from it.

What to do?

Those who run startups become more and more powerful entrepreneurs. Put aside your favorite text editor or Photoshop for a while and begin to sell more, negotiate, make friends, enter into partnership agreements, alliances, open new markets.

Those who invest - to find such entrepreneurs and invest in them money. It is not the search / screening of projects that begins, but the search / screening of people. Otherwise, the money can be simply put in a reliable bank and receive your 10-12%.