secondaries for later stage companies
investing more in later stage companies in general
companies that have not raised in the last 12 months - reapproach with lower valuation
companies with 2 years of runway will just buckle down
hot companies will still be able to raise
lower valuations/multiples, more deal structure
throw out much lower multiples see how they react
use reserves for portcos
consider investing in other geographic locations (Europe 50 years behind US and more pessimistic?)
look for more traction in earlier stages
look for lower burn / better cash management
adjust and create the "new norm"
trickle down effect from public to growth to venture in slow down
looking for payoff in the high prices paid during a bull run
irrespective of how much money funds have raised
lower capital deployment
cheap capital gone
4 types of funds that find their niches and value adds
scale - Sequoia, A16z, Insight
non-consensus alpha - First Round, benchmark. Seed specialists
late stage generalist - big check writers. Tiger, SilverLake
angels / solos - Elad, Naval
raise as much as you can NOW if you haven't already
down round to stay alive if you must
consider funds that invest in venture and growth as capital will be thus available through cycles
consider specialist investors with industry specific resources
consider M&A
consider all corporate partners a potential investor
reduce burn
lay off people as needed / cut costs as much as possible
optimize for profitability if possible
internet / social media has democratized the playbook of starting a company. of course execution is another story but it was very easy to start a company before. a lot of founders have not seen a down market and it is important to totally adjust your strategy and be humble
see this as an opportunity! all amazing companies today survived downturns (PYPL, GOOG, AMZN)
carefully hire and build
differentiation happens in bear markets
Resources
QED - Three Body Problem: Finding the new stable points in VC
Sequoia - Adapting to Endure