3 ways to survive a cash crunch

Plus, VCs don’t love HR anymore August 10, 2023 Hi, {NAME}. Whether you want to blame the slow return to office, the current [obsession with AI]( or the [generally lackluster startup funding market]( the fact is VCs aren’t all that into human resources-related startups anymore. Plus, here are [three options for startups running out of cash](. 💻 [HR tech falls out of favor with investors]( In 2021, investors were [throwing wads of cash]( at HR-related startups that helped companies manage their remote workforces better. That infatuation has certainly worn off: the second quarter of 2023 was the slowest in the sector for venture dollars in three years, [Crunchbase]( data shows. Related Crunchbase Pro list: [Funding To VC-Backed HR Tech Startups]( 🥾 [Bootstrap? Sell? Something else? How to survive a cash crunch]( Hey, startup founders, we get it. Things are tough out there. Revenue multipliers [have deflated](. VCs are [holding tight]( to their wallets, especially if your company isn’t profitable. But there are ways to get your company through a cash crunch in this crummy market. Let’s discuss three of them. 😨 [The downturn is really hitting seed startups now]( It increasingly looks like the startup ecosystem is undergoing a top-to-bottom reset, from seed- through late-stage startups and all the way to the investors that back them. All funding stages — seed, early and late — in July 2023 were down about a third compared to a year ago. 🧑 🏫 [Edtech losing its luster as online learning goes back to school]( Pandemic-fueled funding in edtech is leaving the sector gasping for breath as valuations decline and startups aren’t getting any big investments. There is a bright spot, however, for those that include AI-enabled edtech tools and platforms. While not the $100 million-plus raises of the past, these startups are raising some cash. Related Crunchbase Pro list: [Edtech And Education Startup Funding]( ➡️ [The Billion-Dollar Exits Board: Track IPOs, SPACs and M&A]( Check out [The Crunchbase Billion-Dollar Exits Board]( a curated list of U.S. startup exits — IPOs, SPACs, mergers and acquisitions, and other deals — valued at $1 billion or more, powered by [Crunchbase]( comprehensive data. [Crunchbase ROI Calculator]( [See the number of new accounts Crunchbase can add to your funnel with our advanced prospecting ROI calculator powered by Crunchbase data.]( [Calculate]( Recent Investments [Quest Global]( [$500M]( / [Private Equity Round]( Quest Global is an engineering solutions company that offers a range of services in the engineering and technology domains. Categories: Consulting • Information Services • Outsourcing • Software Founders: [Ajit Prabhu]( [Aravind Melligeri]( Investors: [The Carlyle Group]( (Lead) [Fluor]( [$500M]( / [Post-IPO Debt]( Fluor delivers engineering, procurement, construction, maintenance (EPCM), and project management to governments and clients. Categories: Building Maintenance • Building Material • Construction Founders: [David Constable]( [Novavax]( [$85M]( / [Post-IPO Equity]( Novavax is a biotechnology company that focuses on the discovery and development of innovative vaccines for various infectious diseases. Categories: Biotechnology • Health Care • Pharmaceutical Founders: [Bror Morein]( Investors: [SK Bioscience]( (Lead) More Fundings Company Amount / Round Lead Investor [Horizon3.ai]( $40M / [Series C]( [Craft Ventures]( [Endowus]( $35M / [Series C]( - [Angel Studios]( $17M / [Debt Financing]( - [MindsDB]( $5.0M / [Seed Round]( [NVentures]( [Stable Money]( $5.0M / [Seed Round]( [Lightspeed Venture Partners]( [Starfish Space]( $1.8M / [Grant]( [AFWERX]( [ZestMoney]( Unknown / [Venture Round]( - [All Recent Funding Activity]( Recent Acquisitions [Crocus Technology]( Pending acquisition by [Allegro Microsystems]( for $420M More Acquisitions Company Acquired By Amount [Axiom Test Equipment]( [Transcat]( $38M [All Recent Acquisition Activity]( #{Rails.configuration.daily.cb_url} Discover innovative companies and the people behind them. [Follow Us on Crunchbase]( [View Jobs on LinkedIn]( [Follow Us on Twitter]( [Like Us on Facebook]( 564 Market St, San Francisco, CA 94104 © 2023 Crunchbase Inc. All rights reserved. [Privacy Policy]( | [Terms of Service]( [Unsubscribe]( from Crunchbase Daily.