Get ready – 2019 is going to be a rough ride. Up and down.
Unpredictable month to month. In spite of the amazing startups booming around the world.
Good news is a few will thrive. But a lot are overdue to disappear. Startup history will repeat itself.
It will happen globally. Apple’s China shock is a certain beginning. Venture investing by China’s firms has been overheated since mid-2018. More will come, soon, in all countries.
In the U.S. the politics of Washington D.C. is entering gridlock that signals the end of fiscal stimulus. Wall Street’s plunge has made consumers feel a lot less wealthy since Thanksgiving 2018. Angel investors are pulling back. Venture investors have turned cautious. Later stage CEOs will see valuations move to favor investors – you’ll see more down rounds in 2019.
Early stage founders are wise to prepare now how to survive with no new cash raised over the next 24 months. Cash flow burn rate is once again the prime metric for startup CEOs.
I wish you The Best on your Adventure!