This downturn is an excellent time to found a startup
Andy Stinnes
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Andy Stinnes
Contributor
Andy Stinnes, general partner at Cloud Apps Capital Partners, leads early-stage investments in cloud businesses and serves as active board member and adviser, offering operational support for portfolio companies based on his 20+ years in executive roles in business software.
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The venture bull market is great for founders, but not in the way they might expect
The cloud software industry has experienced an incredible period of growth and success. Recently, however, we have witnessed a deep correction in the public markets. The Bessemer Cloud Index tracking public stocks across this category is down over 40% from its November 2021 high.
This reset in valuations is now rippling through the private venture-backed market, hitting late-stage companies first before early-stage startups feel the effects. That’s a big deal for both startups and venture firms. Many founders are now wondering if it is the right time to raise capital, and how much is realistic.
Let’s take this one question at a time. First, if you are just getting started — or even still just dreaming about your own startup — is a downturn like this even a good time to starting a company?
We believe it is an excellent time.
Raising less gives you more room to make mistakes, more time to correct course, because the pressure to perform is lower.
Why? T …
