A couple of weeks ago, I recorded a podcast episode with six Dutch venture capital investors. The topic? The current market conditions in the tech scene. Although I asked investors from pre-seed to late stage, their responses were quite consistent: if possible, startups should try to extend their runway.
There are roughly two ways to extend runway. First, to decrease burn. In other words, to cut back in costs (people, marketing budget etc.). Second, to raise more funding. Both options are easier said than done. It’s a hard decision to make to fire a large part of your team, especially when you know there is a fierce fight for talent and it might be hard to get them back later. The other option, raising more capital, is not simple at all either, when a lot of investors are decreasing their investment pace and valuations are down. Will you be able to find the right investors and make a fair deal?
Last week at TNW Conference I spoke to several companies that plan to raise an ‘extension’ to the investment round they raised earlier in 2022. They raised, for example, €5 million a couple of month ago and are now looking for an additional €1 million. This should increase their runway from 18 months to, say, 24 months.
And this is where we come into play.
We connect startups and scale-ups to the most relevant investors. Earlier this year, we launched a new co-investment fund: Golden Egg Check Capital. With this fund we invest in the best companies together with the best angels and VCs. We invest small tickets (up to €50k) as part of a larger round. So far we have done four deals.
If you are raising an extension round, please know this:
- We can help you to connect to relevant angels and VCs quickly with direct introductions
- We can also invest up to €50k ourselves (SAFE, convertible or equity)
Our investment philosophy is quite simple: we are picky, but when we invest we are easy. The last thing we want is to get in the way of the founders we invest in. Therefore we only invest in the founders we really believe in, together with investors that bring in expertise and domain knowledge. This hands-off approach allows us to invest in a large group of companies that create a super valuable network of founders, angels and VCs.
Can we help you with your extension round? Get in touch with me if you’d like to discuss! More information can be found here: https://goldeneggcheck.com/startups/capital.