Raising venture capital in down market

Best companies are built in down cycles – Why this is true and how to take advantage of it

The best companies are built in down cycles because they have to be scrappy and resourceful. These companies focus on their core product or service, build a strong team of passionate individuals who buy into the company’s mission, and create a culture of frugality which allows them to weather tough times and emerge stronger on the other side.

They are not distracted by shiny objects, such as new technology or flashy advertising campaigns. Instead, they focus on their core product or service and build a loyal customer base over time.

They often hire talented employees at lower salaries during down cycles, which allows them to keep costs low while still offering competitive wages.

They may also acquire struggling businesses at bargain prices during down markets due to lack of competition (due to consolidation among competitors). This opportunity can allow them to quickly expand their business and gain market share.

Finally, they take advantage of opportunities that arise during downturns such as hiring great talent at lower salaries or acquiring struggling businesses at bargain prices