Margaux Gregoir, Investor at Alven

I could have written about sustainable growth, the impact of AI on your competitive environment, or why talent density matters. These things matter a lot, yet, I think you’re already well aware of that. So, I opted for a broader call because of the current context. 

As founders, your role as a leader goes beyond your business hat. 

You design the products and solutions we use in our business and personal lives; you create a work environment in which dozens, hundreds, or thousands of individuals will grow; you challenge the status quo, question regulations, and shake up the establishment. 

You’re not only an entrepreneur, but a friend, a life partner, a sibling, a parent… And you’re also a citizen. You belong to a society that offers essential rights and you must abide by some duties. In the Aristotelian acceptance of it, a good citizen is an ethical person because the virtues to live a good human life are similar to those needed to rule and be ruled, in a parallel between ethics and politics.

2024 comes with its own bunch of challenges — from geopolitical threats to financial uncertainty — against the backdrop of the AI revolution. Many pieces of our puzzle are reshuffled, our social order is jeopardized by war, by inequality, by an economic crisis… In this context, think of your citizen hat, think of your company as a piece of this bigger social order. Always account for the long-term impact of your decisions, even when tactical moves are critical to your survival. Don’t lose sight of this ecosystem you’re plugged in and that pays back what you give to it. Reread Bruno Latour’s thoughts on modernity. 

In doing so, you create long-lasting relationships — including business ones — that will pay back, you attract talent that will benefit your company, you reinforce your culture if the going gets tough, and you unconsciously prepare for your exit. 

As an entrepreneur, you shape our world. Embrace this challenge and act as a citizen-founder. We do our best to act as citizen-VC too. 

Bruno Delahaye, Partner at Cathay Innovation

In 2024, the watchwords for start-up founders will be agility and resilience to achieve their objectives and, above all, to emerge in a complex economic context. To achieve this, they have several options open to them.

Firstly, they must prioritize growth by optimizing their business models and operational processes. This means refining customer acquisition strategies, optimizing product-market fit, and implementing efficient internal systems to support scaling efforts.

In addition, these managers will also need to rethink their positioning concerning their competitors and emphasize their differentiating points. To do this, investing in R&D will be the key to stimulate innovation or strengthen intellectual property to safeguard themselves. A real breakthrough in 2023, AI was still  one of the main areas of concern in 2024;  a technology that has undoubtedly continued to reshape many areas of the industry and is set to become the backbone of the global economy in the next ten years. For non-AI founders, it is urgent now to gain an in-depth understanding of how their market is transforming and how they can best take advantage of this opportunity and at least enhance their MOAT against this disruption.

Founders will also need to remain vigilant when it comes to managing their cash flow and allocating their capital. In an uncertain economic context in the grip of market fluctuations, financial discipline is critical and it is crucial more than ever to showcase an efficient use of capital. It is essential to strike a balance between investing to stimulate growth and maintaining a healthy cash position to deal with the unexpected. 

Finally, the founders will need to consolidate their relationships with their current investors and explore potential strategic partnerships or financing opportunities that are in line with their long-term vision.

Kolja Heskamp, Managing Partner at torq.partners

The venture capital funding market shows signs of picking up and will recover further throughout 2024. However, if your business doesn’t involve AI, quantum, cyber security, or IoT, you might not feel the love as you did before. If this applies to your company, here are my recommendations for you. 

Firstly, it is time to buckle down and take a leaf out of the bootstrappers’ book. Focus on your economics and margin structure. Work your cash conversion cycle and make your runway count.  Unleash your internal financing power as much as possible to reduce your external financing requirements. Focus and operational excellence are key to keeping it going, and growth for growth’s sake should be questioned more than ever. 

Secondly, while you focus on your business, cast a wider net in your fundraising efforts. Understand what the bankability of your business is. Assess the collateral worth of your order book, recurring revenues, and assets. Learn how to build structures to utilise your customers’ or suppliers’ creditworthiness. Outside of venture capital, connect with strategic investors, family offices, PEs, and traditional investors early. It will not be the unicorn exit you imagined, but it could keep your business alive, creating value for your shareholders and stakeholders alike. 

Being financially savvy will not save you from an underperforming product or lack of traction, but it may just be the skill to tip the balance in your favour.

Léa Verdillon, Partner at Aglaé Ventures

2024 will be the year of truth for founders who planned for 24 months of runway when the market started to change in 2022. If the startups succeeded in improving their cash efficiency while continuing their growth, it would be a great moment to raise the next round of financing and grow in the equity story. Valuations may have changed, but VC funds are ready to invest again. For others, this could be more complicated to find fresh money on the market, especially those who have a lot of debt and need to start reimbursing banks. Ensuring the survival of the company is the number one goal of a founder, followed of course by the product vision and the recruitment of an A team.

With the economic downturn, the customers had to focus on the software, which is bringing ROI, solutions that have a significant topline effect or productivity advantage. That could explain some retention issues for SaaS products in 2023. Founders then took the opportunity to focus on real value in their product roadmap: this is the most important thing at the end of the day. Product, product, product. Keeping the pace of innovation, listening to users, and building only features that bring business value. Good products can drive your growth but also keep your customers dependent. 2023 was also a good moment to adapt the ICP while improving the customer success department. The companies are now stronger and ready to take the chance of going back to high growth.