It's not you, it's m....(the market)

It’s not you, it’s m…(the market)

The Roaring 20’s.  Well, it was really just 2021 but what a year it was!  At the lower end of the middle market where Vertical Capital Advisors does most of our work, 4Q2021 saw a record $190B in early stage investing globally which dropped precipitously to $62.2B by 4Q2023, rebounding only slightly to $66.1B in the first quarter of 2024 according to Crunchbase:

Source: https://news.crunchbase.com/venture/startup-funding-q1-2024-charts/

Anyone seeking venture, start-up or growth capital and even traditional M&A and strategic partnerships felt the pinch last year.  Capital allocators including banks pumped the brakes as inflation and interest rates surged while everyone sat in their perches scouring the horizon for the next macroeconomic event to crest.  Most are still waiting. 

So, it’s not you, it’s the market.  If you have been doing all of the actions that smart, adaptable business owners do but found little interest from capital sources in funding your growth, you are not alone.  Most businesses experienced a slowdown in funding and deals that normally would have been funded find themselves waiting patiently for the markets to normalize. 

What can you do if your business needs capital now?  If you have exhausted all of your efforts to find a capital partner, find a professional with a large network who can help you cast a broader net and be prepared to extend your timeline.  It will take longer to get your deal funded.  Also explore the use of technology to enhance your outreach.  We are doing that now using AI tools to extend our reach and engage with far more individuals than we can realistically contact directly.  Great opportunities will get funded, it will just take more creativity and time to get there.

* * *

ABOUT VERTICAL CAPITAL ADVISORS

Vertical Capital Advisors is an Atlanta-area boutique investment banking firm built on creating tangible value for our clients, serving clients in just about every industry.  Our clients are both capital growers and capital allocators.  How can Vertical help your firm maximize value?

Carolyn Briner
Managing Director
Vertical Capital Advisors LLC
cbriner@verticalcapitaladvisors.com
866-912-9543 ext 108
678-591-4804