Tweet storm from Tom Loverra ( https://twitter.com/tomloverro)
I am starting to realize that many Orthopedic startups do not understand the severity of financial conditions in the venture funding space. Most early stage companies trying to raise money now.
My advice is to read this piece and understand it in order to get ahead of the crowd.
PREDICTION: There's a mass extinction event coming for early & mid-stage companies. Late '23 & '24 will make the '08 financial crisis look quaint for startups. Below I explain when, why & how it will start & offer *detailed advice to founders* on surviving the looming die-off.
First, context: “great” startups will always get funded, albeit not on 2021-style terms. Many “good” startups will endure down or flat rounds. Many merely “ok” and pre-product-market-fit startups will die – at a greater rate than anything we’ve seen since 2008.
Many startups raised ~2 years of cash in 2021 and 2022. They cut burn in H2 2022 to extend that runway. But no matter what, they’ll need to raise again (or sell, or become dormant) in late 2023 and 2024.
4 in 5 very early-stage companies have fewer than 12 months of runway, according to a s...
