Clouded Judgement 8.23.24 - Don't Wait
@JaminBall:
Two weeks ago I wrote about the growing number of private zombies. A common question I got after that post was “what should I do if I’m in that position?” A couple thoughts below. Most importantly - don’t wait. Don’t hope for things to improve. Hope is not a strategy. It’s a lottery ticket. I think there are 3 concrete things to do:Figure out if you’re a short / long term zombie: Turnarounds are hard, but they do happen. There may be some idiosyncratic reasons your market turned on you, but you expect it to turn back. There’s no need to panic at the “bottom,” but it’s also very important to be realistic about your chances of revivalGet closer with your existing investors. At some point you will want to raise more money. It may be a down round. Or you’re hoping to raise a flat round to “val