Down markets change the care abouts of the investor.

The investor wants to know whether the business will survive difficult times. 

Here are some key points to consider when pitching your startup in a down market:

Focus on the core financials to show the business is stable.

Show how the company is cash flow positive or nearing it.

Talk about the break-even point and how soon your startup will reach it.

Show the burn rate is low and shrinking.

Highlight the path to profitability.

Show reasonable valuations and fundraising goals.

Focus on the core business and avoid extraneous products and markets.

Show the strength of the core team and the competitive product they are building.

Talk about how founders have launched and grown startups in down markets before.

Point out the market opportunities in the current down market.

Pitching the startup in an upmarket focuses on the potential growth.

Pitching in a down market focuses on the solidity of the business and its efficiency.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.