The Competition for Startup Capital
When it comes to raising capital in 2018, the data seems to speak for itself: more venture money is going to fewer startups. According to the Wall Street Journal, the relative number of companies receiving funding has decreased by 40%. You could hardly read a piece of industry writing this year without bumping into some version of these statistics. (Case in point: this blog post)
At the same time, some signals suggest that the startup ecosystem is flourishing. Cash keeps pouring in, accelerators continue to be on the rise, and Inc. reports entrepreneurial activity, though not currently rising, remains steady.
So, what’s the real story? Are startup leaders feeling the crunch? Has startup capital really become harder to get?
That’s what we want to find out, and we need your help. As part of our Founder Sentiment Index, we’ve launched the Capital Competition Survey. If you’re a startup founder, or someone involved in the startup fundraising process, we want to hear about your experience raising capital.
We kept it pretty short—the survey shouldn’t take you more than 5 minutes—but the data will be helpful for all of us.
So, if you have the time, will you take the survey? And maybe share it with a friend? We’ll publish the results in a future edition of the Founders Forward.