The current funding slowdown means startup founders must be more flexible in their search for investors. But should that stretch to compensating investors for taking a board seat?
It’s tough out there for many startups, as venture investors take a more cautious approach to writing cheques. UK tech venture capital funding was down 57% in H1 compared to last year, and that could translate into a nerve-wracking time for those founders whose runway is nearing an end.
Deals are still happening, but they are taking a lot longer, and founders have to be more flexible about valuations and terms. That’s to be expected given the riskier landscape. However, founders must be careful they don’t give away too much as they push to close a deal....