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To Fundraise or Not To Fundraise in 2023: Insights from Investors
The year 2023 has unfurled, sparking various reactions and conversations within the startup ecosystem. I find myself in the thick of it all — as a startup adviser, an investor, and most importantly, a keen observer of the unfolding narrative.
2023 Industry Trends
First, let’s take a look at the bigger picture. The ‘VC Funding In CEE Report — 1Q 2023’ reveals a significant 60% year-on-year drop in investments in the CEE region and a 53% decrease in global VC transactions. The report urges us to consider these figures not as doom and gloom but as an invitation to refocus on innovation, responsible scaling, and long-term value creation.
Investor’s View on Fundraising in 2023
To provide a more nuanced perspective, I recently surveyed a range of investors on their investment intentions for 2023 and their pre-seed investment criteria. Additionally, I talked personally to numerous investors in the past months. While 42% of investors reported investing less compared to 2022, most are maintaining their investment activity levels or planning to invest in startups. The key considerations include the founders’ experience, market size and potential, the uniqueness of the product or service, and evidence of traction.
