It’s no secret that the startup funding world is going to change quite a bit over the course of the year. Most of the startups that IPO’ed in 2015 are seeing lower-than-expected share prices, valuations have dropped, and some have declared that the sky is falling.
While I don’t think the sky is falling, I do think valuations got out of control, and some market correction is going to happen this year, and yes this will impact startups, and investors, all over the world. We’re lucky to live at a time where so many venture capitalists have blogs and share their opinions on what’s happening in the market.
Here are three blog posts I recommend taking a look at if you’re a startup founder trying to understand what the fundraising landscape looks like in 2016.
- The Full Dataset on What VCs are Thinking About Funding in 2016 – if there’s one post you read, make it this one. Mark Suster (Upfront) does a deep dive, backed by real data.
- The Nature of Leverage in Fundraising Conversation has Changed – great insights from Tomasz Tunguz (Redpoint) on the leverage in fundraising conversations has shifted over the last year and will continue to re-balance this year.
- Startup funding slowdown hits harder in Silicon Valley than SF – as we all know, every startup ecosystem is a bit different. It’s easy to put silicon valley and SF in the same bucket by they are two different places with different dynamics which this article highlights.
I think 2016 is going to be an incredible year for startups, major milestones will be hit, teams will be built, and investments will happen. That being said, there’s no denying that the landscape will change this year, the question is – how will you react to this change?