Startups Are Experiencing a 'Great Reawakening': Top VC's Advice

The startup world is undergoing a 'Great Reawakening' after a 'mass-extinction event' last year, according to Tom Loverro, an investor at IVP. This means it's time for founders to invest in growth again and increase their cash burn to speed up progress.

Loverro, who accurately predicted the tough times for startups last year, advises that the worst is behind us. He encourages founders to stop focusing solely on efficiency and start taking calculated risks to grow their businesses.

While many startups have focused on cutting costs and downsizing over the past two years, Loverro believes it's now time to get back on offense. He points to the stabilizing cloud-software market and the return of venture funding as indicators of a shifting economic landscape.

Key takeaways:

• The startup landscape is changing. The worst is behind us, and it's time to embrace growth again.
• Don't wait for the economy to fully recover. Start investing in growth now, while the market is good enough.
• It's time to be bold. Experiment with new products, increase budgets, and take calculated risks.
• Don't ignore AI. Every company needs a machine-learning or big-data strategy to stay competitive.

Loverro emphasizes that companies should not be afraid to spend money again and that being overly conservative can be detrimental to growth. He highlights the importance of setting company goals with 'stage gates' that unlock additional spending and aggressively pursuing new opportunities.