TLDR:
Key Points:
- Gordon Pan, president of Baird Capital, predicts an upcoming rebound in funding and M&A deals for startups in the second half of 2024.
- Baird Capital focuses on growth rate, net revenue retention, and capital efficiency when considering investments in new companies.
In a recent interview at the GeekWire Awards VIP reception, Gordon Pan, president of Baird Capital, offered startup founders a glimmer of hope by suggesting that the market is shifting in their favor. Pan highlighted the potential rebound in funding and M&A deals starting in the second half of 2024, driven by pent-up demand from investors.
Pan emphasized the importance of focusing on fundamentals and growing with discipline in today’s market environment. Baird Capital evaluates potential investments based on criteria such as growth rate, net revenue retention, and capital efficiency.
According to Pan, the current market conditions have led to a shift towards more selective investments, with a greater emphasis on specific financial metrics. He advised startup founders to prioritize building a solid business model with strong metrics to attract potential investors.
Looking ahead, Pan expressed optimism for the back half of 2024 and 2025, predicting a strong investment and M&A market. He encouraged entrepreneurs to stay focused on getting their fundamentals right, as the market trends are starting to align in their favor.
