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November 27, 2023 | Tom Ballard

Survey finds tech companies well capitalized for now, but fear dropping valuations

That's the conclusion after surveying more than 70 companies around the world.

Yael Benjamin is the Founder of Startup Snapshot, a data-sharing platform working to increase transparency in the venture ecosystem.

In a recent guest article for Crunchbase News, he writes, “Over the past year, down rounds, flat rounds, and more complex venture terms have become the norm, as fewer investor dollars are being invested at substantially lower prices.” So, to better understand what is happening inside private tech companies, his firm worked with Intel Ignite, Consiglieri, and the Zell Entrepreneurship Program to collect insights from Chief Financial Officers at more than 70 tech companies around the world.

What did they learn?

Those “tech companies are well capitalized for the next few months, but fear that dropping valuations are at their doorstep,” Benjamin writes. “About two-thirds of finance executives reported that their firms have more than one year of runway, with 42 percent reporting they have over 18 months of capital, and 22 percent reporting they have 12-18 months of capital. With sufficient funding in the bank, these companies secured the breathing room necessary to weather the volatile market conditions, at least for these next few months.”

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