‘Some companies, really having the promise of going after big markets growing fast, [will be] receiving a lot of funding and momentum. But on the other side, the 'companies that need to build real businesses and efficient businesses' will struggle to raise cash.' Quintini highlights the dichotomy in fundraising, emphasizing that while some startups are positioned well for growth, others lacking solid fundamentals will face significant challenges.
‘There is no set milestone of sales or growth that will turn VCs' heads next year. What we're looking for is actually the quality of the ARR [annual recurring revenue], and not the quantity of ARR.’ Riley stresses the need for startups to focus on sustaining quality, emphasizing that high retention and customer investment over time are key metrics for attracting venture capital.
‘Are customers sticking around once they're on board? Do they tend to increase their spending with the startup over time?’ These questions are pivotal for VCs like Riley, who prioritize long-term customer relationships over sheer numbers, underscoring the shift in focus for startups seeking funding.
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