Statistically, only four out of 10 corrections lead to full-scale bear markets. And even if one materializes, opportunities prevail. VC funds hold $308 billion in dry powder ' nearly 3x higher than pre-COVID levels. But while predicting a bear market is difficult, preparing for one isn't. Spending like it's still a bull market: When funding tightens and the next round is uncertain, founders may need to choose between cutting expenses or risk running out of capital. Although painful, it can be the difference between surviving and shutting down. Undermining long-term thesis: Aiming to stretch their runway, some founders make the mistake of cutting critical functions ' canceling essential features, slashing revenue growth or laying off key talent. This strategy might delay bankruptcy, but it transforms the company into an underperforming 'zombie startup.' Ignoring changing market conditions: Sharp valuation booms and busts are typically associated with public markets. However, public...
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