First Cheque with Cheryl Mack & Maxine Minter Tis the season to be reflective - 2023 in review on First Cheque
Summary
Cheryl Mack and Maxine Minter reflect on the year 2023 and discuss the challenges and trends in the startup ecosystem. They talk about the tough environment for founders and investors, with many companies struggling to raise funds and facing down rounds. However, they also highlight the resilience and determination of founders who were able to survive and even thrive in the face of adversity.
The hosts discuss the increase in funding for female founders, although there is still a long way to go in achieving gender parity in the industry. They also touch on the growth of climate tech and AI as key areas of investment, with these sectors propping up the funding ecosystem.
Cheryl and Maxine express cautious optimism for the year 2024, noting the need for continued creativity and resilience in the face of challenges. They also highlight the importance of addressing issues of behaviour and inclusivity in the startup ecosystem.
Key Takeaways
- Challenges in the Startup Ecosystem (2023): The year was marked by difficulties for many companies in raising funds, with instances of down rounds reflecting a challenging environment for the startup ecosystem.
- Resilience of Founders: Success in these tough times was often attributed to the resilience and determination of founders, who demonstrated the ability to navigate through the demanding market conditions effectively.
- Funding for Female Founders: While there was a notable increase in funding for female founders, reaching a historical high, the conversation acknowledges that more efforts are necessary to achieve gender parity in funding.
- Growth of Climate Tech and AI: Both climate tech and AI emerged as standout sectors, drawing significant investments and spearheading innovation despite the broader economic challenges.
- Outlook for 2024: The year ahead is approached with cautious optimism. The emphasis is on the necessity for ongoing creativity and resilience to address and overcome upcoming challenges.
Quotes
- "I think ingenuity was a real theme. I'm excited to dive in today, obviously. Tis the season to be reflecting." - Cheryl Mack
- "The founders that survive this are the ones that we are so excited to back as investors." - Maxine Minter
- "I think optimism and holding on to a sense of optimism won this year. Pairing it with creativity, also really effective." - Maxine Minter
- "I think 2024 is looking cautiously optimistic. Cautiously optimistic." - Maxine Minter
Chapters
00:05 - Introduction to the podcast
00:25 - Reflecting on the year and the challenges faced
02:02 - Difficulty of raising funds and the resilience of founders
04:32 - Founders' determination to survive and adapt
05:08 - Employment Hero becoming a unicorn
06:31 - Tentative re-entry of international investors into the Australian ecosystem
07:38 - Gap between top founders and average deals narrowing
08:49 - Overpaying in the early stages of funding
09:05 - Australian tech facing criticism from the media
10:46 - Turning point in sentiment with SVB collapse and Milk Run
11:18 - Discussion about the impact of FTX and Sam Bankman-Fried's sentencing
12:13 - AI and climate tech propping up the funding industry in 2023
13:56 - AI adoption curve and its impact on the legal tech industry
15:01 - Tight capital environment in Q1 and Q2 of 2023
15:32 - Increase in interest and funding for climate tech
17:10 - Rise of climate tech-focused funds in Australia
18:19 - Lack of AI-focused funds in Australia
20:06 - Creativity in funding and rise of professionalized fund management
21:30 - Optimism about more fund raising in 2024
21:52 - Increase in funding for female founders, but still low overall
22:33 - Matching population demographics
22:48 - Lack of data on women-led...
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