Technology entrepreneurs hoping to snag funds must be prepared to tweak their business models or better still, find a unique advantage, warned top investment gurus at Singapore’s EmTech Asia conference.
Start-up funding is on the wane following a boom year that drove valuations sharply higher. During the last three months of 2015, global funding to venture capital-backed firms dropped 30 percent on quarter to $27.3 billion, the lowest in nearly a year, according to data by KPMG and CB Insights.
“We won’t see as many unions this year, it’s definitely going to be a harder fundraising environment for entrepreneurs over the next few years,” warned Jeff Clavier, founder and managing partner at seed-stage fund SoftTech VC.
Given the cautious backdrop, venture capitalists are becoming more selective.
Businesses with the flexibility of adapting to market needs will stand out, said Justin Kan, partner at Californian seed accelerator Y Combinator.