TLDR:
- Tom Loverro predicts a “Great Reawakening” for startups after a tough year.
- Investors are urging startups with sound unit economics to increase cash burn for growth.
Tom Loverro, a partner at Institutional Venture Partners, believes that the startup landscape is facing a “Great Reawakening” following last year’s challenges. With venture funding becoming available again and the cloud-software market stabilizing, Loverro advises startups to invest in growth. While efficiency is important, Loverro suggests that startups should not hold back on spending for progress. He encourages founders to set goals with “stage gates” to unlock additional spending, try new initiatives, and prioritize AI strategies for competitiveness. As signs of life in the software economy begin to emerge, Loverro believes that startups should seize the opportunity to grow responsibly and stay ahead of the curve.
