# Venture & Startup Strategies During a Downturn Pt 2

**Published by:** [jelca thinks](https://paragraph.com/@jess/)
**Published on:** 2022-05-20
**Categories:** other tech, investing
**URL:** https://paragraph.com/@jess/venture-strategies-downturn-2

## Content

Venture strategies during a market downturnsecondaries for later stage companiesinvesting more in later stage companies in generalcompanies that have not raised in the last 12 months - reapproach with lower valuationcompanies with 2 years of runway will just buckle downhot companies will still be able to raiselower valuations/multiples, more deal structurethrow out much lower multiples see how they reactuse reserves for portcosconsider investing in other geographic locations (Europe 50 years behind US and more pessimistic?)look for more traction in earlier stageslook for lower burn / better cash managementadjust and create the "new norm"Market downturn effectstrickle down effect from public to growth to venture in slow downlooking for payoff in the high prices paid during a bull runirrespective of how much money funds have raisedlower capital deploymentcheap capital gone4 types of funds that find their niches and value addsscale - Sequoia, A16z, Insightnon-consensus alpha - First Round, benchmark. Seed specialistslate stage generalist - big check writers. Tiger, SilverLakeangels / solos - Elad, Navalthings startups should keep in mindraise as much as you can NOW if you haven't alreadydown round to stay alive if you mustconsider funds that invest in venture and growth as capital will be thus available through cyclesconsider specialist investors with industry specific resourcesconsider M&Aconsider all corporate partners a potential investorreduce burnlay off people as needed / cut costs as much as possibleoptimize for profitability if possibleinternet / 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 humblesee this as an opportunity! all amazing companies today survived downturns (PYPL, GOOG, AMZN)carefully hire and builddifferentiation happens in bear marketsResourcesQED - Three Body Problem: Finding the new stable points in VCSequoia - Adapting to Endure

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