Should you start getting fit for the summer?

Most venture-backed companies are advised to.

⏰ Tic-Tac: new Pilot.com data suggests that 57% of venture-backed startups have fewer than 18 months of runway left. As fundraising takes at 6+ months, most are on the clock to secure funds by mid-2024.

🥶 Frozen: venture-growth stage dealmaking is sharply down (Pitchbook). Recent IPOs (Instacart, Klaviyo) are lackluster, causing caution about going public.

🧗 Crunch: the market is tough for those seeking new capital, with a significant 65% drop in average pre-money valuations in 2023 compared to 2021's peak.

🍎 Frugality: companies are cutting costs to stretch their runway. Will it suffice to reach profitability or at least a believable route to it within a tight timeframe?

⚖️ Tradeoffs: using runway wisely and exploring alternatives (acquisitions or buyouts) is leading to a longer median time between funding rounds (1.5 yr).

In short: it’s not just about funding, but about turning operationally fit. Those with sound fundamentals and agile exit plans will come ahead. Year in year out.