As venture capital funding continues to dry up, founders are scrambling to prolong their runways, regardless of how much cash they currently have on hand. However, the firms that require the most capital are having the most difficulty. To investors, it appears that everyone is in hard times. Founders are claiming that raising funds has become more challenging across the board, it appears that it is much more difficult for some than others.
Wa’il Ashshowwaf, co-founder and CEO of Reyets, a social justice app that helps individuals learn about their rights in various scenarios, believes it will be more challenging for innovators like himself who are aiming for more impact-driven storylines. He told TechCrunch that his company had three verbal commitments for bridge financing this year — prior to a formal round next year — but that all investors withdrew only weeks before checks were set to be made.
“Investors are responding to [startups] that are more sure bets than the ones that are early and unproven,” Ashshowwaf said. “For us in the impact space, the line between business and benefit corp or a social venture makes [the investment opportunity] a lot harder for them to digest rather than, say, manufacturing a widget.”