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As scale-up entrepreneurs grapple with uncertainties ahead, issues of accessing capital are particularly top of mind. Endeavor spoke with four operators-turned-investors — Reid Hoffman (Greylock), Martin Escobari (General Atlantic), Nico Szekasy (Kaszek Ventures), and Shailesh Rao (former TPG Growth) — to discuss best practices and actionable tips on managing through this crisis.
Reid, Martin, Nico, and Shailesh have been at the helm of companies through hypergrowth, IPOs, and successful acquisitions. They have also had to lead through two recessions, market downturns, and fundraising crunches.
They joined Endeavor for a series of strategy sessions on leading through crisis — here’s what they had to say to Endeavor Entrepreneurs on how to navigate fundraising in a fundamentally different world.
In today’s environment, cash is king. Some companies were lucky enough to have closed their rounds in January or February right before the crisis hit. But many were not so lucky. It’s going to be significantly harder to fundraise over the next quarters, so getting a handle on cash flow and extending runway is key.
The best place to turn to for an injection of capital is your existing investors.
For entrepreneurs that did not raise right before the crisis hit, how should they think about when the market will be ready to make new investments? What signals can these entrepreneurs monitor to make sure they’re one of the first companies to go back out and engage with investors when they’re open for business again?
All of our founders-turned-funders reinforced that entrepreneurship is a true testament to persistence, grit, and adaptability. As Reid noted, “If it’s the year of the tsunami, this is also the time for the entrepreneurial fleet.” Entrepreneurs able to adapt and innovate will shape the way we rebuild on the other side of this crisis.
Watch the full Endeavor Presents: Leading Through Crisis strategy sessions at endeavor.org/leadingthroughcrisis.
Anisha Mudaliar is Head of Access to Capital at Endeavor. You can contact her at firstname.lastname@example.org or via LinkedIn here.
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