Updated on

The world of venture capital has been hit hard by the economic downturn caused by the COVID-19 pandemic. Worldwide investing is down by over 50% year over year as of Q1 2023, and the recent collapse of Silicon Valley Bank has made it even harder for startups to raise capital. However, this does not mean that securing funding is impossible. Private investors are still sitting on over half a trillion dollars of assets that need to be deployed, and startups can take steps to improve their chances of securing funding.

Here are three key things that startups can do to increase their chances of securing funding in 2023:

  1. Be Aggressive with Your Investors

Startups should be aggressive in following up with their investors and providing them with all the information they need to make informed investment decisions. This includes providing regular updates on the company’s progress, addressing any concerns that investors may have, and being proactive in seeking out feedback and guidance.

  1. Be Reasonable with Your Valuations

At a time when raising funding is difficult, startups need to be realistic about their valuations. They should be level-headed in their requests and avoid setting unrealistic expectations. This can help to build trust with investors and increase the chances of securing funding.

  1. Clearly Display Your Traction Metrics

Startups should clearly display their traction metrics, including revenue generated, letter of intents received from commercial partner agreements, or metrics such as daily active users or monthly active users for SaaS-based companies. This can help to demonstrate the company’s growth potential and provide investors with the information they need to make informed investment decisions.

While securing funding may be challenging in the current economic climate, startups that follow these three steps can increase their chances of success. And if you’re struggling with funding, you can always seek out the advice and guidance of an experienced venture capitalist like myself. So if you’re looking for help in securing funding for your startup, book a meeting with me.