Y Combinator has advised founders to prepare for the worst amidst the economic downturn trickling down from big tech companies like Shopify and Netflix.
“No one can predict how bad the economy will get, but things don’t look good,” these were the words used by Y Combinator in a letter to its portfolio founders.
“If your plan is to raise money in the next 6-12 months, you might be raising at the peak of the downturn. Remember that your chances of success are extremely low even if your company is doing well. We recommend you change your plan,” YC added, advising the founders to “plan for the worst”.
What should investors do at this point? What does this portend for an angel investor? How does it relate to the African context?
In two hours (7:00 PM WAT), we will host:
- Damilola Aderinto, Operations Partner at Future Africa
- Olumide Soyombo, Co-founder at Voltron Capital
- Maria Rotilu, an Early Stage Investor
...on Twitter Spaces to discuss actionable insights that angel investors can leverage while making investments amidst the crises. The conversation will be moderated by an Investment Analyst, Joshua Ishola.
The session will cover:
- The implication of the economic downturn on angel investing.
- Things to look out for before investing in any startup during this global downturn.
- Ways to bounce back or respond to a bad investment.
You must always be prepared for the unexpected, including sudden, sharp downward swings in markets and the economy. Whatever adverse scenario you can contemplate, reality can be far worse. — Seth Klarman
Set a reminder for the session, it's going to be insightful!