👉 Gilles Bertaux, Livestorm:

The tech industry is currently navigating a challenging landscape, with market conditions suggesting that the crisis will persist for at least another two years. Post-crisis, we may also face a period of slower growth. Here are the strategies I would recommend.

Firstly, adopt a leaner approach. Efficiency should be the cornerstone of your business model. This doesn’t just mean cutting operating expenses; it extends to optimizing Customer Acquisition Cost (CAC) and Lifetime Value (LTV) as well. Scrutinize every line item and question its necessity. In a constrained environment, every dollar saved is a dollar earned.

Secondly, refine your positioning. The days when tech companies primarily sold to other tech companies are dwindling. It’s crucial to carve out a specific niche where you can make a significant impact. This could be a particular geography, a unique use case, a target persona, or an industry that remains resilient despite economic downturns. Specializing will enable you to build a stronghold, making it difficult for competitors to encroach upon your territory.

Lastly, invest in your product. Use this period to strengthen your offering for your core audience. A robust product will not only retain existing customers but also attract new ones. When the market rebounds, a superior product will position you to capitalize on the upswing, allowing you to regain momentum more quickly.

👉 Elina Berrebi, Revaia:

Maintaining financial efficiency and staying adaptable is vital in this dynamic environment. Here are several key recommendations for startups looking to thrive in H1 2024 should consider in the context of the tech industry’s ever-changing landscape:

1.    Balance growth and profitability: try to be break-even on your historical geography or demonstrate a short-term plan to reach profitability, you can prioritize growth over profitability for new markets or strategies.

2.    Metrics and capital efficiency: startups should present healthy financial metrics while also ensuring a minimum 18-month financial runway. Burn multiple, the rule of 40%, customer acquisition payback period, or break-even ARR per employee are interesting KPIs to track.

3.    M&A: activity can be particularly advantageous at this time. Startups should explore opportunities to acquire or be acquired by other businesses, as this can lead to several benefits: geographical expansion, product synergies, financial strength, competitive advantages, talent acquisition.

4.    ESG: track ESG indicators to sustain the long term attractiveness of your company for talents, customers, and investors.