“Startups, it’s time to think like camels — not unicorns.”

As we enter the bear market, this quote resonates with me.

Fewer than 10% of founders who successfully raised pre-seed/seed during the bull run will be able to secure their next round. It’s 10x more difficult to raise.

Keys to stay in the game:

1.Founder-market-fit

Product-market-fit is a hot topic. Founder-market-fit is more important. Whenever I meet founders of successful startups, I am always struck with the thought “this is exactly the right person to solve this problem”.

2.Showcase the storm

Describe your experience weathering the COVID storm followed by a bear market; which tough decisions you made, which Ls you took, and which product pivots you completed. Your ability to responsibly manage investors’ funds is evident here.

3.Network your &ss off

Virgil Abloh was asked how he landed his job at Louis Vuitton. His response: “I dreamt about it. I willed it to fruition. Thinking that it could happen and doing everything in my power to somehow make it cross paths. I can name people I met eight years ago that were part of this process. I can name people I met eight months ago that were part of it too.”

4.Equity: to hold on or to let go

Controversial, for sure. The majority says hold. From experience, I don’t know if first-time founders should hold on to their equity shares. It depends on your goals. When you exit your previous startup and start a new one, be prudent. However, if you’re up to bat for the first time, I think there’s an argument to give it up. Don’t worry about the valuation — when it comes to the right people.