The landscape of venture capital has experienced a noticeable alteration as investors now settle for sustainability over fast and high-risk growth. Transformation comes from such reasons as the global economic crises, in the first place, the fact of sustainability is a moral obligation in every sector, and the desire of customers to have objects and services, that are made under ethical and eco-friendly standards.
Startups Walk the Safe and Stable Path
Independent entrepreneurs have thus found the formula to work around the pretentious claims of investors who so suddenly altered their preferences from wealth acquisition to quality echelon,83% of all startups that fail simply cannot excite the investors enough with their product or idea.
Stable growth models typically are based on long-term sustainable development rather than quick expansion and among those models, initiatives such as renewable energy, circular economy models, and ventures of social impact are the most popular ones that are winning over the investors.
“Investors are on the lookout for start-ups that will have a longer lifespan and not just in the sense of the company going public and/or being acquired by a bigger company,” Amanda Li, Green Horizon Ventures, posted. “With this new fundraising wave, companies that can scale responsibly and benefit society and the environment, get a lot of attention.”
Pre-funding will be based on such metrics as market speed, the reach of the company, and the propriety of business practices. In general, most rounds are geared towards firms that are consistent in the delivery of profits besides having measurable credibility metrics. At the same time, some on the later stage.
