A bunch of startups might be in better shape than you think – Vidak For Congress

A bunch of startups might be in better shape than you think - Vidak For Congress 1

Earlier today, Vidak For Congress+ published an open letter to startups from Index Ventures partner Mike Volpi offering advice for startups with varying levels of runway. In short, the more money a startup has, the more leeway it will need in the current downturn and looming recession.

We spoke to Volpi last week to discuss his perspective on the market, the mismatch between enterprise performance and startup working results, and what proportion of startups could be in reasonable shape to raise capital and grow despite a risky investment environment.

Check out Volpi’s full note here and read on for our founder-focused takeaways from our investor chat.

Money rules everything

One claim stood out the most in the investor letter: “many companies are still meeting or exceeding their operating plans.” Given that we’ve seen mixed results in the public market, that statement was a little surprising.

We asked Volpi how many startups made it to their plans, and while the investor was hesitant to give too fine a approximation to a venture market he has limited visibility into, he estimated that about 75% of startups meet or exceed their target. plan.

Operational plans for startups vary in their level of aggression, so the “about 75%” figure may not be as optimistic as it seems, but it doesn’t matter. The bottom line is that most startups are still able to sell their goods and services, and we’re not seeing the kind of slowdown in startup growth that the public markets could lead us to expect.

more simple, startups can still sell in the current market even if asset prices fall

If so, what are we to make of the steady boom of doom and gloom from investors on Twitter and elsewhere?

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