Need to be “distressed” to consider alternative plans?

The answer is no.

🏪 Market context: more startups can’t secure venture funding in the current market. Rather than “hoping for the best” (not a wise strategy!), they should explore alternatives, such as buyout or M&A.

🛬 Soft landing: many ventures with no “unicorn” prospects are running out of funding. But they could transition into profitable, self-sustaining entities held for the long term, with the right partners.

🌿 Back to basics: venture capital often pushed startups towards unsustainable growth reliant on continuous funding. They set a high bar for growth rates, leaving many companies without support.

👕 One size does not fit all: many VCs have programmatic frameworks for startup growth. They have inherent value but may result into a “vintage” path with sometimes inadequate milestones.

💔 Mismatch: ergo, a host of (good) companies no longer fit this model due to lower growth rates. Only 13% of SaaS companies achieve $10M ARR within 10 years. Yet they are viable with reconfigured targets.

In short: alternative paths exist for startups struggling to meet the high growth expectations of traditional VC firms. Curious is rolling up businesses that no longer align with their VC investors; that’s smart. Collaborative buyouts are another, win-win option. Recap + liquidity +upside = new chapter for founders.