Antoine Martin
Co-founder & CEO
amo

It’s very hard to be generic on this one, but pre-PMF I’d stay very low and focus exclusively on the product, and post PMF I’d do the opposite.  

It is a bit contrarian, but I don’t think I would focus on profitability.

Profitability for an early stage startup is a slow death. We build startups to make them grow really fast; we are valued that way. When we stop, we become zombies and lose everything:

• Our teams are built on ambition, and turnover is immediate if ambition is gone.

• Our venture partners are chosen based on ambition, and they lose faith and interest immediately if we reduce it.

• We are addicted to adrenaline and lose focus when it’s not there anymore.

• There will always be younger startups focused on growth in your vertical, and they will catch the attention and funding you would want. 

On top of that, and despite the VC crunch, I still haven’t come across a company with explosive growth and no funding. It might take a little longer to raise, but if you are growing at more than 12-15% a month and have reached a certain size, you’ll be financed and well financed. 

The other thing I’d do is focus on the US as much as possible, in terms of market but also in terms of funding. I expect them to restart faster than we will, and I’m already seeing US VCs being more aggressive than they were a year ago.

Damien Morin
Founder & CEO
mobile.club

More alarming than the low startup fundraisings is the fact that in Q1 23 very few venture capital firms in France have raised new funds. This suggests that this year’s second semester is going to be difficult, and there are no shortcuts. My recommendations would be to first secure as much cash as you can. If you have a good equity level, raise debt from major banks. If you have venture investors, make a bridge. If you have potential new investors , make a round. The valuation doesn’t matter. You can make a flat round or a down round, the only important thing for your company is to survive. This is your mission. 

Cash is king, don’t necessarily aim to be breakeven but make sure you have a runway of 24 to 36 months. If this requires terminating some of your employee contracts, do so. Being a leader is also being brave in bad market conditions period. No one will ever blame you for taking difficult decisions. Be respectful, take all the time needed to explain your situation. Be transparent about your cash level, integrate your top executives into your roadmap. Remember that there are almost no major companies in this world that have not experienced hard times.

Guillaume Linet
Chief Of Staff to the CEO
Spendesk

Before proceeding, I would take a moment to reevaluate my plan in light of any changes in the market context. My aim would be to prioritize efficient growth in a thoughtful and strategic manner. I would only focus on what is working very well from a unit economics perspective. 

To continue improving your unit economics, I would take into account how AI can enhance both your customers’ experiences and streamline your internal operations. I would start doing the following :

• Assess the AI opportunities by conducting an internal audit. From Administration, Customer Support, and HR, to Legal, Marketing, and Engineering, AI is an ability multiplier

• Reimagine your product roadmap from a first principles perspective. If you were to build your product today from the ground up, how would you leverage AI to best address your customers’ core needs?

• Take action and start shipping : Give every employee access to LLMs and share best practices for using them effectively. Host AI hackathons to encourage experimentation and creativity. Start reimagining features that can benefit from AI, focusing on those that are safe, feasible, and high-impact.

• Start your AI strategy today and once it’s on the market, focus on long-term defensibility 

Finally, with the market slowdown, I would  take the opportunity to pause and reflect on your role as CEO to be very intentional about how you want to operate in this new change of paradigm.