Uncertainty

Founding a company during economic uncertainty and excelling takes more than just a hungry founder with a good idea. Investors are engaging with fewer pitch decks from founders, according to DocSend data — investor activity dropped less than 2% year-over-year (YoY) from 2022 and 4% from 2021. Just a few years ago, a founder’s market led to “zombie” companies raising money at unrealistic valuations with a “growth at all costs” mindset, proving there are pitfalls even in a highly founder-friendly market. There will be founders who fail in 2023, but there will also be founders who succeed in ushering in the companies that define a generation. Instilling solid building blocks for the company’s foundation is even more critical in a tighter economy and investor’s market.