A recent report quantifies the growing sense of caution amongst startup CEOs, as the fastest central bank fiscal tightening in a generation continues to create economic turbulence. 

The survey reported more than 88% of the 250 CEOs and startup founders polled were either “extremely worried” or “somewhat worried” about the current fundraising environment, with lack of operating cash identified as the largest single concern for businesses this year.

Given the turmoil of the past couple of years, combined with the broader macro themes, we can note that during conversations with Fundsquire customers, company executives stated their investors are putting pressure on them to improve their tech infrastructure and simplify their supply chains.

“It was easy for start-ups to raise capital in recent years as markets valued growth over profitability. During an economic shift or downturn, knowing what matters most to customers is mission critical. The companies that get that right – quickly – stand to pick up outsize gains in market share, and experience management is at the center of getting it right.”

Delighted CEO, Caleb Elston

Taking a step back at looking at the macro picture, Elston makes a great point. There’s currently between $250 -$500 billion in VC dry powder (source 1, source 2) sitting on the sidelines. This capital will need to be deployed, and when the macro winds shift the companies that have both survived the downturn and continued to invest in their technology and product-market fit will be in a great position.