Guest post: Going through downcycles will help you find survival strategies

Guest post: Going through downcycles will help you find survival strategies

Photo by 金 运 on Unsplash

Against a backdrop of weaker sentiments and a capital downturn in 2022 and 2023, large venture capital players and accelerators like Sequoia Capital and Y Combinator have sounded the alarm bells, warning their portfolio companies to “plan for the worst” and that “the market is signalling a strong preference for companies who can generate cash today”.

The numbers bear it out. According to Crunchbase, venture funding in Asia declined to $36.3 billion in Q1 2022, down 31% from the previous quarter. Deals followed suit, with only 1,709 deals announced in Q1 2022, a 21% quarterly drop from 2,153 deals closed.

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