Entrepreneurs have been living in a world run by the rise-and-grind mentality, working themselves to exhaustion with their cash-burning and growth-at-all-costs business models. But, unfortunately, times are changing, and the hustle culture will not cut it in today’s startup landscape.
The COVID-19 pandemic has shaken markets across the globe, making it dangerous for startup founders to rely heavily on venture capital (VC). So while the startup ecosystem remains filled with opportunities, the question remains: how can founders build a path to profitability now that cash burning and accelerated growth are losing their effect?
Also read: Echelon 2022: The search for alternative funding options for VCs
Shaping a new culture
Capital efficiency is becoming the culture more than speed and amount of growth. Growth remains essential, of course, but it should no longer be the only goal. Working on growth and profitability is a balancing act that startup founders may want to master to avoid crashing down. Resiliency in models and a long-term outlook will help them find their footing in a COVID-hit fundraising ground.
Developing a new founder’s mindset
The post-pandemic era requires a fresh perspective to navigate. Capital constraint, instead of cash burning, helps a new business to harness its ability to operate efficiently and to develop creative and logical ways to invest since too much capital comes with risks of bad investment choices and waste of resources.
Also read: The evolution of early-stage investing and fundraising in SEA
Learning about sustainable growth
Startups must learn how companies evolve and pivot to profitability and sustainable growth in today’s climate. This is one of the topics that will be tackled at the Echelon Asia Summit 2022. Experts will hold a panel discussion about “Breaking away from the cash-burning model and focusing on achieving sustainable growth.” Jeremy Au, Chief of Staff at Monk’s Hill Ventures, will moderate the discussion among Toh Ting Feng (GetGo), Ahmad Rizqi Meydiarso (Feedloop), Wilson Yanaprasetya (Dagangan), and Zheng Wei Quah (Accredify). In addition, they will attempt to answer the questions that startup founders should ask to survive the current environment, such as:
- What actions are startups asking to get to profitability?
- Google’s Sundar Pichai recently said that fun shouldn’t be equated to money. Is that a problem for startups these days, especially in all the large fundraising rounds in the past few years?
- How has the culture changed as your startups moved to the profitability model?
- Do more profits equal more bonuses and benefits?
- Are founders thinking of bridge rounds to close the financial sustainability gap?
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Echelon Asia Summit 2022 (October 27-28) returns after a three-year hiatus. It aims to gather the most influential decision-makers and industry leaders from the Southeast Asia tech and startup ecosystem.
Register for Echelon Asia Summit 2022 now!
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