Startups saw a surge in seed round funding in the aftermath of the COVID-19 pandemic throughout 2021 and 2022, but accessing Series A funding rounds has proven more difficult than ever. Investor priorities have shifted and placed a new focus on profitability rather than growth. Tax partner and leader of the firm’s startup practice Dave Finklang, CPA/CGMA, MBA, examined the phenomenon in his recent article for the St. Louis Business Journal’s INNO platform.
Dave explains how this challenging environment came to be, what actions startups can take to meet shifting investor expectations and more advice that can help lead to a more successful pitch meeting with venture capital firms. He writes, in part,
In past years, scaling a business was one way to prove to investors that your business model was viable, but current circumstances have led investors to value profitability and revenue potential over exponential growth.Dave Finklang
His actionable advice for startups can help founders determine the best path to extend their runway and convince potential investors of their business’s value.
Read the entire article to learn more about Dave’s insights: As Series A funding dries up, startups must shift focus to profits.All Insights