👉 Hedi Mardisoo, Cachet

In recent years, FOMO and trend-chasing have dominated the startup scene. Yet, our industry’s core strength lies in the “give first” ethos that propelled many enterprises. The big question now is, which of these ventures will thrive in the next two years?

So, for fellow founders in 2024: Keep following startup best practices and prioritize building sustainable businesses. Be open to calculated risks, especially in evolving markets where hidden opportunities often emerge. Stay receptive to emerging technologies beyond the current hype.

Shift your approach from rigid product development to continuous iteration—launch, learn, adapt, and enjoy the journey. Invest time in robust business models, even if growth may be slower. Filter out the noise of FOMO and hype, staying true to your vision and mastering the fundamentals. Here’s to 2024, a year for resilient, sustainable startups shaping our future success.

👉 Reinder Lubbers, No Such Ventures

Breaking news: when reviewing financial statements, VCs now actually scroll down from the revenue line, to look at things like margins (yuk) 

So, now that current and future profitability get valued more by VCs, what to do as a founder when raising money?

Simple: show the VC you know all key metrics like your favorite movie quotes.

Nothing will make VCs believe more that you’re in control and are a founder worth backing, as: 

i) you know what’s driving the business; and 

ii) you know what your VC counterpart wants to hear, showing commercial skills.

Then, VCs want to understand that you understand i) where you’re growing to and ii) how to get profitable. 

So, perhaps you’d like to contemplate giving the VC

1. a monthly model with:

i) clearly improving patterns and 

ii) back-checks on future results

On revenue/ARR: say you estimate €50m ARR in 3 years on the back of believable and slowly declining growth rates, then explicitly show what (small) percentage that is of your SOM and how you calculated SOM.

On margins: costs lowering as % of revenue are believable when cost drivers are clearly estimated, with historical performance showing continued improving patterns.

2. A 1-page GSheet/xls with anonymized customers on the Y-axis and months on the X-axis. 

Show them “That’s how we calculate NRR (incl. churn) and see metrics improve over time”, and watch the VC be delighted to see you’re making their lives easier, showing you’re in control of the funding process and of your company.