Traders do not cling to startups’ winter: they like to attend for spring
In a panel held at an event, investors bring hope to entrepreneurs in the Venture Capital market
The moment experienced by the startup market is not the best, with the market and experts analyzing a scenario of low investments and few rounds being carried out. The so-called “Startups Winter” has been worrying entrepreneurs around the world and leaving the feeling of apprehension: is the investment harvest over? But investors prefer to look to the future, what they are calling the “Startup Spring”.
This morning, the São Paulo hub BHub organized an event that received entrepreneurs and investors from this market. With an exclusive panel to address this issue, ecosystem experts discussed the current moment and shared their expectations for the future. Called “The future of Venture Capital in Latin America”, the panel was attended by representatives of some of the main investment funds in Brazil.
Speaking of capital contribution, Carol Lacombe, representative of Valor Capital Group, explains that the market is not standing still, just down. “Investments have always existed and will always exist, just because the market is down does not mean that business with startups will end. Money is out there, floating around, one hour or another it appears. It may take time, but the investments will always arrive”, says the executive.
Traditionally, the risky investment landscape is viewed by investors with a certain – and natural – apprehension. Due to the crises experienced in recent years, such as the Covid-19 pandemic and the war in Ukraine, for example, the feeling of certainty of success has become increasingly sought after by those who contribute. To bring this feeling, the entrepreneur needs to be increasingly prepared. Therefore, the speakers listed some of the main qualities to be observed.
“We need to see the relationship between investor and entrepreneur as a marriage, it needs to be a healthy relationship. So we start with transparency, showing the other side what is being done and why. Good communication is also necessary, just being with someone, showing process and ideas, gives the feeling of work, that you are seeking your goal. But you have to have barriers, the relationship between the parties always generates intimacy, but knowing how to differentiate business from friendship is very important, you can’t have regrets from anyone, professionally “, he explained. Gustavo Ahrends, who represents Norte Ventures.
At the end of the panel, investors raised some points that they consider fundamental for those looking for investments and need to behave in front of investors and start talking about security: you need to know your processes and your business, no one should know it better than you . Knowing how to recognize difficult days is also essential: moments come and go, but you have to be clear in your head that it is only fleeting. Still dealing with these moments, you need to be prepared, have a cash reserve in your business to avoid squeezes when you go through a bad tide.