Post-correction gloom lifts for startups, but VCs still have the upper hand
The latest quarterly figures from Cut Through Venture provide a glimmer of hope for founders, but show VCs still have the upper hand over startups in funding rounds.
The post-correction doom and gloom appears to be subsiding amongst Australian VCs, though there are signs of continued investor caution, according to the latest Cut Through Venture quarterly report.
The Q3 quarter saw $739 million of capital raised across 77 deals, though the number does not include smaller raises which often go unreported (estimated to be between 10% and 15% of all capital raised each year). The report also includes the survey results of 161 VCs with regard to market sentiment.
Many startups are continuing to reserve their cash and reduce costs, while on the investor side many are demanding deal terms to de-risk their investments.
Investors report that a high number of the startups in their portfolios (76%, compared with 33% last quarter) have had to lay off between 1% to 20% of their staff, though there were fewer startups that were forced to shut down (6% vs 9% last quarter).
