Artem Gladkikh’s Post

Fundraising founders, don’t be too hard on yourself—it’s a tough fundraising environment, and that’s no secret. But remember to keep raising your standards because the bar for VC funding is getting higher, and you’ve got to meet it. As the venture capital landscape tightens, competition for dollars is fiercer than ever. At Startup Ignition Ventures, we’re seeing this shift firsthand, every day more and more apparent. In 2021 and 2022, many startups could secure VC checks despite being loosely thrown together and rough around the edges. Fast forward to 2024, and those same startups wouldn’t make the cut. That's not a knock on yesterday's startups as much as it is a contrast to today’s fundraising environment being completely different. Today, the founders getting funded are buttoned-up, detail-oriented, and operating at a much higher level. Everything has to be top-notch to catch a VC’s attention. Why the change? The number of active investors has dropped by 38% from 2022 to 2024 (PitchBook), meaning fewer deals are being made. VC funding is also down over 30% year-over-year (GlobalData). This means the standard has tightened, and startups must rise well above the average “2022 or 2023 fundability status” to secure 2024 investment. Startups now need to show exceptional business models, traction, products, and teams to stand out in a shrinking pool of opportunities. The landscape may be tough, but it’s also ripe for startups that prove they’re exceptional. Now is the time to build, to gear up, and then be ready for further opportunity as the market begins to turn. Which I personally think is around the corner in 2025.

Timing is startups is everything but you cannot hide from market facts. When it gets hard you have to do even more with less. (like every great Bootstrapped Founder) Find a way to get that first product working. Find a team that wants to make it work. *incentives Find a trusted investor whose less concerned about short term pain. Find a way to cut almost all costs Find a way to raise the bar. (yes, raise the bar, make getting in harder than ever)

Every brilliant #startup idea requires an almost equal brilliant funding strategy. Let’s shed some light on the often overlooked aspects of early-stage #VentureCapital funding. Most #entrepreneurs focus on fundraising headlines, forgetting that VC isn't about 'who raises the most?' but 'who raises the right amount?'. Overfunding can lead to poor decision-making and unrealistic growth expectations. The good news? It’s a golden era for early-stage funding. A recent report found that VC investments reached unprecedented levels in 2020, over $130 billion, marking a 14% increase from 2019. Bootstrapping still reigns supreme. A recent report shows that for every $1 of venture capital, founders contribute $3.6 of their own. Bootstrapping can potentially lower dilution risks, leaving founders in control of their company’s future. Crowdfunding has also found a place in the funding mix. Platforms like Kickstarter and Indiegogo have democratized early-stage funding, allowing everyday people to become initial investors. This option also provides valuable market validation. Here’s a dandy tip - Probable investors should be courted prior to fundraising. This allows you to gauge the investor's engagement and identify potential roadblocks early, saving precious time during fundraising. Are all eggs in one basket a prudent strategy? Not always, Diversifying your investor pool can protect the company if one investor drops out or becomes less involved. Remember, behind every successful startup, there is a tailored, strategic funding plan. Where do you stand in your early-stage funding journey? You can read more about it here:

The 2024 Big Book of Venture Capital for Startup Fundraising is Out I just finished reading this fantastic resource on the VC industry (thanks, Rohit Yadav, for sharing.) Packed with valuable insights, it is a must-read for founders and investors alike, especially the section on fundraising. While you go through the data, I'd also encourage you to think about: 1️⃣ The Fundraising Journey VCs are acutely aware that products pivot Sometimes, the startup team is more valuable than the product itself So, make sure you surround yourself with the right people Joe Vrankin, CEO of Puttshack, talks about that here: https://bit.ly/3yCdU5n 2️⃣ Deal Dynamics Building momentum takes effort Be prepared to meet with numerous investors before securing funds And don't underestimate the power of momentum Securing the first investor can very quickly accelerate subsequent deals 3️⃣ Negotiations Unless you're highly experienced, don't negotiate in real-time. Instead, take requests and seek advice from your partners, advisors, or legal counsel. Remember, while some deal terms might seem hectic, most VCs want a reasonable agreement. The VC landscape is a fast-moving beast. Take this opportunity to equip yourself for success with the latest insights on startup fundraising. 👇 Access the full report from Rohit for a comprehensive read in the first comment below. PS 🔔 Follow me for strategies and resources for startups and VCs! Looking to raise capital? 💸https://fundingstack.com/ for VCs and investors 💸https://foundersuite.com/ for startups At only $250/month: Fundingstack gets you access to 221,000+ global investors. Or you can send me a direct message with "FREETRIAL" and I'll give you a secret access link.

Capital Raising Guide for Startups: Navigating the complex terrain of capital raising is crucial for startups aiming to scale and succeed. Stone & Chalk’s extensive capital raising guide offers valuable insights and strategies for startups at every stage, ensuring founders are well-equipped to secure the funding they need. Why Consider Diverse Funding Options? 1) Range of Options: From bootstrapping to venture capital, the guide outlines various funding avenues, allowing startups to choose the path that best suits their growth stage and business goals. 2) Strategic Timing: Understanding when to engage investors and how to align funding rounds with business milestones can significantly enhance a startup’s appeal to potential backers. 3) Cost Efficiency: Exploring different funding methods helps startups maintain equity and control while gaining the necessary capital to grow. Key Insights from the Guide: a) Choosing the Right Funding Stage: Whether it’s pre-seed, seed, or Series A, each funding stage has its nuances. The guide helps you identify the right time and strategy for each stage. b) Preparation is Key: The importance of a well-crafted pitch and clear business plan is emphasized, with tips on how to make your startup attractive to investors. c) Understanding Equity and Valuation: The guide provides a deep dive into equity distribution, valuation methods, and the long-term implications of your funding choices. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

What is Venture Capitalist? How does it works in the #USA? A #venture #capitalist, or VC, is someone who invests money in new companies, called startups, that they think have big potential. Imagine you have an awesome idea for a business, like a new app or gadget, but you don’t have the money to make it happen. A VC is someone who might give you the money you need, hoping your idea will grow into a big, successful business someday. Here’s how it works in the USA. You start by creating a pitch. A pitch is a short presentation where you explain your idea, why it’s different or better than what’s already out there, and how it could make money. You’d also share things like your business plan, the market you’re aiming for, and any early successes. VCs are usually looking for ideas that could make a big impact, so you want to show them why your idea could be the next big thing. If a VC likes your pitch, they might decide to invest in your company. But they’re not just giving you free money—they want something in return. Most VCs ask for equity, or ownership, in your company. This means they get a share of the company, and if your business becomes successful, they earn money from their share. Sometimes, VCs also get a say in major business decisions since they’re investing a lot. The USA has tons of venture capitalists, especially in places like Silicon Valley, where many tech startups are based. VCs there look for companies with innovative ideas in areas like technology, health, and green energy. Each VC might have a different focus. Some invest in brand-new #startups (called early-stage), while others look for companies that have already started but need money to grow bigger (called later-stage). Getting a VC to invest isn’t easy because they hear pitches from tons of companies. You have to stand out, show that your idea has big potential, and prove you have a solid plan. Also, VCs want to see that you’re committed to making the business succeed, so being confident and prepared helps. If you do get venture capital, you have more than just money—you have someone who believes in your idea. That support can make a huge difference, especially when your business faces tough challenges. Venture capital can be the boost that helps your idea grow into something amazing.

“Vyld, a German startup creating period products using seaweed, created a new financial instrument, the Future Profit Partnership Agreement, to raise funding aligned with their mission as a steward-owned company.” Vyld is just one example of what it can look like to redefine the fundraising journey for startups, outside of the "traditional" VC mold. When entrepreneurs understand the full spectrum of options and know how to assess them, they're more empowered to make more strategic decisions aligned with their vision and mission. Allie Burns, Nathaly Botero, and Aunnie Patton Power share in a new piece in Impact Entrepreneur that the key to unlocking capital and support for startups addressing global challenges is helping all actors in the innovation ecosystem (including entrepreneurs, capital allocators, or ecosystem builders) better understand that there are different paths to scale and finance that growth. For founders thinking through how much capital they need, what type of capital they need, and where to find these resources, read the full piece: https://lnkd.in/evKFsh-R 

Capital Raising Guide for Startups: Navigating the complex terrain of capital raising is crucial for startups aiming to scale and succeed. Stone & Chalk’s extensive capital raising guide offers valuable insights and strategies for startups at every stage, ensuring founders are well-equipped to secure the funding they need. Why Consider Diverse Funding Options? 1) Range of Options: From bootstrapping to venture capital, the guide outlines various funding avenues, allowing startups to choose the path that best suits their growth stage and business goals. 2) Strategic Timing: Understanding when to engage investors and how to align funding rounds with business milestones can significantly enhance a startup’s appeal to potential backers. 3) Cost Efficiency: Exploring different funding methods helps startups maintain equity and control while gaining the necessary capital to grow. Key Insights from the Guide: a) Choosing the Right Funding Stage: Whether it’s pre-seed, seed, or Series A, each funding stage has its nuances. The guide helps you identify the right time and strategy for each stage. b) Preparation is Key: The importance of a well-crafted pitch and clear business plan is emphasized, with tips on how to make your startup attractive to investors. c) Understanding Equity and Valuation: The guide provides a deep dive into equity distribution, valuation methods, and the long-term implications of your funding choices. ----- Follow All Chance Hub to learn from more innovative insights

Early-stage startups often hit a funding wall, as self-funding is limited, and banks may reject them. This "valley of death" can stifle great ideas. Angel investors offer a lifeline, providing not just funds but also mentorship to turn ideas into reality. This article delves into the world of angel investing, examining their motivations, methods, and what they seek in startups. It's a crucial guide for founders to understand and engage with these essential financiers. The advice here could be pivotal in transforming a startup from a struggling concept to a successful enterprise. It's essential reading for navigating early-stage investment challenges, it offers clarity and direction for engaging with influential angel investors. https://hubs.ly/Q02fPrvj0

Are you a startup founder, or thinking of becoming one? In today’s market, numerous funding options exist beyond the traditional bank loan (or help from friends and family), empowering you to access the capital required to nurture your innovation. Alex Watts from Granted Consultancy - a Ryan company and I put this quick guide together to help demystify the funding jungle. We give an overview on: 🪽 Angel Investment 💷 Venture Capital 🔭 R&D Grant Funding 👷♂️ Sweat Equity Featuring opinion from Adam Watts (Mercia Ventures), Tom Kennard (Granted) and Simon Bos (Gravitywell). https://lnkd.in/eiEkt7jb #startups #founderjourney #venturestudio #angelinvestment #venturecapital #grantfunding #sweatequity