{"id":1381,"date":"2023-08-11T10:26:18","date_gmt":"2023-08-11T17:26:18","guid":{"rendered":"https:\/\/www.ghosh.com\/blog\/?p=1381"},"modified":"2024-11-22T09:14:02","modified_gmt":"2024-11-22T16:14:02","slug":"navigating-the-new-normal-q2-report-highlights-for-tech-founders","status":"publish","type":"post","link":"https:\/\/www.ghosh.com\/blog\/navigating-the-new-normal-q2-report-highlights-for-tech-founders\/","title":{"rendered":"Navigating the New Normal: Q2 Report Highlights for Tech Founders"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1248px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\"><div class=\"fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><p><iframe src=\"https:\/\/play.ht\/embed\/?article_url=https:\/\/www.ghosh.com\/blog\/?p=1381&#038;voice=en-US-Wavenet-I\" scrolling=\"no\" height=\"90px\" width=\"100%\" frameborder=\"0\" allowfullscreen><\/iframe><\/p>\n<\/div><div class=\"fusion-text fusion-text-2\"><p>The latest <a href=\"https:\/\/pitchbook.com\/news\/reports\/q2-2023-pitchbook-nvca-venture-monitor\">PitchBook-NVCA Venture Monitor report<\/a> reveals an evolving venture landscape that demands adaptability from tech startup founders seeking funding. By examining key data and trends, founders can make smart decisions amid shifting market dynamics.<\/p>\n<h1>Tightening Purse Strings<\/h1>\n<p>One major trend shows investors getting more selective with funding at all stages. As this chart illustrates, median early-stage deal sizes have declined 25% year-over-year to $6 million.<\/p>\n<p><a href=\"https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture1.png\"><img decoding=\"async\" class=\"lazyload aligncenter size-full wp-image-1382\" src=\"https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture1.png\" data-orig-src=\"https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture1.png\" alt=\"\" width=\"710\" height=\"687\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%27710%27%20height%3D%27687%27%20viewBox%3D%270%200%20710%20687%27%3E%3Crect%20width%3D%27710%27%20height%3D%27687%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-srcset=\"https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture1-200x194.png 200w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture1-300x290.png 300w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture1-400x387.png 400w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture1-600x581.png 600w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture1.png 710w\" data-sizes=\"auto\" data-orig-sizes=\"(max-width: 710px) 100vw, 710px\" \/><\/a><\/p>\n<p>This means founders need to show investors concrete progress in product-market fit and traction to secure rounds. The report also finds seed deal activity slowing\u2014prepare for longer closes and increased due diligence.<\/p>\n<h1>Runway Focus<\/h1>\n<p>With capital tighter, the report finds VCs advising startups to cut costs and extend runway to avoid raising in current climate. Areas like marketing and advertising prime for trimming.<\/p>\n<p>Raising too early risks lower valuations and harsher terms. Be ready to justify need for new capital and have clear path to next milestone. This prudent strategy also applies to growth-stage founders\u2014as this chart shows, mega-rounds sharply declining.<\/p>\n<p><a href=\"https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture2.png\"><img decoding=\"async\" class=\"lazyload aligncenter size-full wp-image-1383\" src=\"https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture2.png\" data-orig-src=\"https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture2.png\" alt=\"\" width=\"955\" height=\"667\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%27955%27%20height%3D%27667%27%20viewBox%3D%270%200%20955%20667%27%3E%3Crect%20width%3D%27955%27%20height%3D%27667%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-srcset=\"https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture2-200x140.png 200w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture2-300x210.png 300w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture2-400x279.png 400w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture2-600x419.png 600w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture2-768x536.png 768w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture2-800x559.png 800w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture2.png 955w\" data-sizes=\"auto\" data-orig-sizes=\"(max-width: 955px) 100vw, 955px\" \/><\/a><\/p>\n<h1>M&amp;A Uptick<\/h1>\n<p>It&#8217;s not all gloom\u2014the report finds a major uptick in VC exits via M&amp;A. Corporates are acquiring startups that can&#8217;t reach the public markets.<\/p>\n<p><a href=\"https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture3.png\"><img decoding=\"async\" class=\"lazyload aligncenter size-full wp-image-1384\" src=\"https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture3.png\" data-orig-src=\"https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture3.png\" alt=\"Chart of median exit size\" width=\"1432\" height=\"635\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%271432%27%20height%3D%27635%27%20viewBox%3D%270%200%201432%20635%27%3E%3Crect%20width%3D%271432%27%20height%3D%27635%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-srcset=\"https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture3-200x89.png 200w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture3-300x133.png 300w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture3-400x177.png 400w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture3-600x266.png 600w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture3-768x341.png 768w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture3-800x355.png 800w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture3-1024x454.png 1024w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture3-1200x532.png 1200w, https:\/\/www.ghosh.com\/blog\/wp-content\/uploads\/2023\/08\/Picture3.png 1432w\" data-sizes=\"auto\" data-orig-sizes=\"(max-width: 1432px) 100vw, 1432px\" \/><\/a><\/p>\n<p>This exit avenue looks to increase. Startups that can show business fundamentals and path to profitability may find promising acquisition opportunities.<\/p>\n<h1>Key Takeaways<\/h1>\n<p>While the funding environment is undeniably more risk-averse, data-savvy founders can adapt. PitchBook&#8217;s analysis provides intelligence to optimize decisions, conserve capital, impress cautious investors, and plan the right exit moves.<\/p>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":2,"featured_media":1385,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25,29],"tags":[],"class_list":["post-1381","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fundraising","category-startups"],"_links":{"self":[{"href":"https:\/\/www.ghosh.com\/blog\/wp-json\/wp\/v2\/posts\/1381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghosh.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghosh.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghosh.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghosh.com\/blog\/wp-json\/wp\/v2\/comments?post=1381"}],"version-history":[{"count":2,"href":"https:\/\/www.ghosh.com\/blog\/wp-json\/wp\/v2\/posts\/1381\/revisions"}],"predecessor-version":[{"id":1490,"href":"https:\/\/www.ghosh.com\/blog\/wp-json\/wp\/v2\/posts\/1381\/revisions\/1490"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ghosh.com\/blog\/wp-json\/wp\/v2\/media\/1385"}],"wp:attachment":[{"href":"https:\/\/www.ghosh.com\/blog\/wp-json\/wp\/v2\/media?parent=1381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghosh.com\/blog\/wp-json\/wp\/v2\/categories?post=1381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghosh.com\/blog\/wp-json\/wp\/v2\/tags?post=1381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}