Beenext Tells Startup Founders How to Adapt to the Funding Winter

Beenext, a Singapore-based early-stage investor that has backed companies such as BharatPe, Open, and Jupiter, among others, has joined the growing list of venture capital funds that have issued cautionary notes to their portfolio companies, advising them to reset and adapt to the current market downturn. Beenext has asked all founders to collaborate with their existing shareholders, revise marketing and headcount budgets, and look for additional capital.

In a two-pronged plan, Beenext in its note has divided companies with less than 18 months and more than 18 months runway.

Beenext has asked portfolio founders with less than 18 months of runway to pause experiments on new ideas and business lines until their next funding round, focus on monetization for core products, demonstrate a clear path to profitability, secure longer revenue contracts, and freeze new hires. It also stated that the current funding winter, caused by adverse global macroeconomic conditions, is likely to last for the next 24 months.

Beenext advised its portfolio companies with more than 18 months of runway to significantly reduce burn, prepare for worst-case scenarios on headcount, and take necessary actions. It also advised companies to consider an acquisition or pivot if they did not have a product-market fit.