“Grow all the way” cost” fueled the funding fire in 2021, as venture capitalists put money into startups and spent tons of money on everything from overleasing to inefficient customer acquisition. But amid this year’s downturn, venture capitalists decided — to say the least — that burning cash in the name of growth may not have been their best idea.
They released memos, tweeted about it, and spent time telling it reporters that they may have screwed up some of their riskier bets. They said preserving cash and a potential path to profitability was the soup du jour of investing in the second quarter, while taking big risky bets on high-growth startups burning money was not on the menu. But did their actions match their words? Not really.