Tony Cheng, a partner at Foresight Ventures, said that founders should focus on surviving during the market downturn, even if this means taking funding offers with unfavorable terms.
“I think right now the biggest problem and obstacle for a lot of these people is the lack of confidence, mainly because we haven't really seen any new innovation in this space.”
In addition, the executive said that due to the limited market activity and number of users, the space hasn't been able to"see too much traction in any direction." However, the executive remains positive that things can turn around when there's a better macro landscape and when people get more pumped about the next crypto cycle.
When asked if founders within the space should take funding offers even though the terms may not be as good as they would expect, Cheng said that the main thing to do at this point is to “survive.” “If you are lacking in capital, if you don't have the runway to kind of get you through the next year or so, you should be taking capital and taking as much as you can get because that money might not be available anymore after maybe 2 or 3 months,” he explained.
The executive highlighted the importance of self-preservation for founders and staying in the game. Otherwise, the venture capital executive said that all the work that was done in the past few years would be gone.The executive added that in the context of the bear market, the"growth at all cost" approach does not make sense. Instead, companies should focus on being profitable. “You just have to make sure that you can survive.
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