Downturns are an exciting time for entrepreneurs and investors alike. Quality entrepreneurs who focus on the fundamentals of real growth will have less competition from startups fueled by venture capital dollars, me-too products and ego. Likewise, many of the “tourist” investors retreat, providing increased opportunities for longstanding investors, many of whom have been priced out during the frenzy. That said, I’ve been telling my founders to raise now and raise as much as they can. If a startup is flush with cash and focused on the right metrics, a downturn can be a windfall.
[Editor’s note: To tap the wisdom of our distinguished group of Xconomists, we asked a few of them to answer question heading into 2016: “How should entrepreneurs and investors prepare for a future downturn?” You can see other questions and answers here.]
