Chapter
Founder leverage during market downturns
The leverage for raising money in the startup scene swings towards investors during market downturns, leaving founders with less leverage. It may be wise for aspiring entrepreneurs to wait for consolidation and take advantage of available resources.
Clips
During periods of economic downturn, investors gain leverage in funding rounds while founders lose leverage.
35:51 - 40:18 (04:27)
Summary
During periods of economic downturn, investors gain leverage in funding rounds while founders lose leverage. The advice for entrepreneurs considering starting a company during this period is to still negotiate but be aware that the investors will likely hold more leverage.