Tom Loverro, general partner at IVP, sees opportunity amid a potential market downturn and predicts a period of “a great reawakening” for startups. Loverro argues that now is the time for startups to innovate and adapt to stay ahead of competitors in this dynamic market situation.
This “Great Reawakening” allows startups to establish new business partnerships, enter untapped markets and drive growth during volatile times, and it’s an opportunity for companies to rethink their strategies and strengthen their market positions, he said.
Previously, Rabelo has made ominous predictions of a “mass extinction” of startups. PitchBook’s 2023 data supports this prediction, reporting that approximately 3,000 startups worldwide will fail in 2023. These startups will lack effective strategy and financial strength, pointing to the need for resilience, adaptability, and strategic planning.
While the economic recovery is slowly progressing, Rabelo encourages startup founders to be proactive and seize the opportunities of the environment rather than slip into defensive paranoia.
Seizing the opportunity in the sluggish startup market
Though a full economic recovery has yet to materialize, Lobello believes in the power of positivity and potential opportunity, rather than the cautious thinking that hampers growth.
Loverro’s startup survival guide includes performance-based budgeting, accelerating advances in artificial intelligence, allocating resources to successful projects, dropping unproductive efforts, etc. It’s also important to understand customer needs, provide excellent customer service, evaluate proposals, assess competitors, and conduct regular team training.
Rather than fearing failure, seeing it as the first step towards success and learning from the experience is crucial for growth and improvement.
Podium CEO Eric Rea supports Loverro’s approach, emphasizing the importance of overcoming the fear of failure and taking smart risks, while also acknowledging the challenges many businesses have faced over the past year.
While charting the story of venture capital from the dot-com boom to the extinction event, Rabelo sees cyclical patterns in the industry. He believes that AI is a key focus given its inherent value despite its high cost. Rabelo’s foresight could be a turning point for startups to revitalize their operations and reshape the future course of the dynamic business environment.
