This Week in Startups
Fundraising hurdles and M&A slowdown with Becki DeGraw | Wilson Sonsini Startup Legal Basics
Sep 5, 2024
Becki DeGraw, a partner at Wilson Sonsini, specializes in startup legal matters, particularly fundraising and M&A. In their discussion, she highlights the current fundraising landscape, marked by down rounds and investor expectations. Becki also delves into the slowdown in M&A activity, impacted by regulatory challenges and antitrust laws. She advocates for reform in M&A regulations to stimulate activity. Additionally, the importance of compliance and cybersecurity strategies for startups is emphasized, making it a must-listen for aspiring entrepreneurs.
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Quick takeaways
- Startups are navigating a challenging fundraising landscape, requiring cost-cutting measures and realistic growth expectations to attract investors.
- Regulatory pressures are creating hesitance in M&A activities, challenging startups to adapt their data policies and compliance strategies.
Deep dives
Challenges in Fundraising for Startups
The fundraising landscape for startups has become increasingly complex, particularly in the wake of significant market changes. Many companies are encountering obstacles as investors expect them to cut costs and extend their run rates instead of chasing rapid growth. This shift has created a paradox where companies that followed advice to stabilize their finances are returning to the funding arena with less impressive growth metrics. As a result, while some founders aimed for sustainable practices, they find themselves facing down rounds or flat rounds, making it harder to attract investment compared to previous years.
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