There’s no denying we are in the midst of an economic downturn. Spending has slowed, prices have risen, and redundancies continue to be announced, particularly in the tech space. This year alone, 81,000 employees have been laid off across the UK during March 2023 — including even the most secure tech giants like Amazon, Google, Meta, and Microsoft. As you can imagine, the already challenging task of raising funding for a startup becomes even more arduous in this kind of climate.
The proof is in the numbers. According to Crunchbase, global VC funding fell 53% year on year in Q1 2023, continuing a downward trend that began in the first quarter of 2022.
In the UK specifically, KPMG reported a 76% decrease in invested funds YoY, from £12.3bn raised in Q1 2022 to just £2.9bn raised in Q1 2023. Companies looking to raise Seed or Series A rounds are having to fight more for their portion of a ‘decreasing in size’ pie, so having a strong strategy is vital....