Adapting to Funding Trends

📉 VC Funds Brace for Market Shakeout as 2025 Approaches The venture capital industry is navigating turbulent waters as we head into 2025. Funds are taking longer to close rounds, and many Limited Partners (LPs) face liquidity constraints stemming from prior commitments to other asset classes like private equity, real estate, and infrastructure. This has led to a slow-moving fundraising environment, forcing VC firms to rethink how they operate. ➡️Extended Fundraising Timelines Fundraising cycles that once took six to nine months are now stretching well beyond a year. Data from PitchBook and CB Insights shows that total VC fundraising in 2024 is on track to hit its lowest level since 2017, reflecting a cautious investment landscape. Many LPs have hit their allocation limits, squeezed by reduced distributions from previous funds and declining public market portfolios. ➡️VC Firms Are Adapting To survive—and thrive—VC firms are making strategic adjustments: Portfolio Streamlining: Many firms are cutting underperforming startups from their portfolios to focus on top-performing companies that show real growth potential. ➡️Business Model Adjustments Some funds are pivoting their investment strategies, moving from traditional early-stage deals to growth equity, secondaries, or even structured financings. Firms are adjusting their fundraising schedules, spreading out capital raises over longer periods to ease LP pressure. ➡️Doubling Down Instead of chasing new deals, VC firms are deploying follow-on capital into their most promising startups, hoping to maximize returns from companies already showing strong fundamentals. 2025: The Final Market Shakeout? 🔎As we near 2025, the bottom of the venture market correction may be in sight. Analysts from Crunchbase and J.P. Morgan suggest that we’re entering the “final shakeout” phase—a critical inflection point where underperforming, cash-strapped start-up's will likely shut down or be acquired at distressed valuations. This will clear the decks for the next wave of high-potential startups. With weaker players exiting the ecosystem, VC balance sheets will become leaner, more focused, and better positioned for growth when the next upcycle begins. ✅Survival of the Fittest The coming year could be one of the most pivotal in recent VC history. Funds that adapt quickly, maintain LP trust, and invest with precision will likely emerge stronger. As the market resets, the best-managed funds with disciplined strategies and resilient portfolios will be well-positioned to dominate when conditions improve. Let me know if you’d like deeper insights or data-driven expansions! 🚀 #venturecapital2024 #ventureinsights #founders #innovation #startups #newable

Building Resilient NGOs: Navigating the USAID Shutdown & Beyond The recent global suspension of USAID funding has raised pressing concerns across the development sector, particularly for NGOs in Africa. It’s a stark reminder of the risks of over-reliance on single-donor funding and the need for a more resilient, diversified, and strategic approach to non-profit sustainability. As Operations Management Professionals, we must proactively prepare for such shifts. Here’s how NGOs can mitigate risks and adapt: 🔹 Diversify Funding Streams: Over-dependence on one donor is a vulnerability. Now is the time to explore European, African, and private-sector funding, build strategic partnerships, and consider social enterprise models for revenue generation. 🔹 Strengthen Financial Resilience: Every NGO should have reserve funds covering 6-12 months of operations. Flexible financial planning ensures continuity when funding is disrupted. 🔹 Optimize Operations for Efficiency: Leaner, more cost-effective structures ensure sustainability. Shared services, digital solutions, and smarter procurement strategies can drive operational efficiency without compromising impact. 🔹 Prioritize Local & Regional Partnerships: African-led organizations must leverage regional bodies (AU, EAC, ECOWAS, SADC), community-based organizations, and corporate donors to build sustainable support networks. 🔹 Adapt Program Design: Shifting donor priorities demand agility. NGOs must align their interventions with emerging funding trends, ensuring their work remains relevant and fundable. The organizations that adapt, innovate, and strengthen local ownership will not only survive but thrive in the evolving funding landscape. 💡 What strategies is your organization using to navigate donor shifts? Let’s discuss! #NGOResilience #USAIDShutdown #USAID #OperationsManagement #FundingDiversification #SustainableDevelopment #AfricaLeadership #StrategicPlanning

If you’re a federally funded organization, operate like you won’t get another dollar - because you might not. Administrative changes and shifting political priorities can affect your funding when you least expect it. Operating with the mindset that no funding is guaranteed forces you to move faster on your funding sustainability strategy. Here’s how we’re approaching this reality at Innosphere: 💰 Diversifying Our Funding Sources We don’t just rely on government grants - or any single source for that matter. We’re actively pursuing philanthropic and corporate funding, but not just from anyone. We’re reaching out to mission-driven organizations that align with our work. 🎯 Being Specific with our Asks Funding partners need to know exactly what they’re investing in and a vague request won’t cut it. We focus on clear, outcome-driven initiatives that directly align with our funders' priorities. 🔄 Prioritizing Sustained Funding Over Sponsorships Sponsorships work for one-off events, but they don’t fund large-scale, impact-driven work. We’re focused on securing long-term investment, not just covering piecemeal operational costs. The bottom line for federally funded orgs is: Act now. Adapt quickly. Plan like federal funding isn’t guaranteed - because it never was.

Three years ago, I met a passionate founder who had just closed a $5M seed round. Their product was innovative, the team was agile, but their financial operations? A ticking time bomb. They were juggling: -> Manual accounting processes that consumed valuable time. -> Overlooked tax credits, leaving money on the table. -> Disorganized compliance records risk penalties. Fast forward to today: ->Automated financial systems have reduced manual tasks by 40%. ->Strategic tax planning has unlocked over $1M in savings. ->Robust compliance frameworks have ensured peace of mind. This transformation wasn't magic—it was about embracing the right strategies and tools. 💡 Why This Matters Now In 2025, the financial landscape is shifting: -> AI-driven financial tools are revolutionizing how startups manage budgets and forecasts. -> Sustainable investing is no longer optional; it's a competitive advantage. -> Private credit markets are booming, offering new funding avenues. Startups that adapt to these trends are not just surviving—they're thriving. If you're a founder feeling the weight of financial chaos, know that a streamlined, strategic approach is within reach. Let's connect and explore how to turn your financial operations from a burden into a catalyst for growth. #StartupSuccess #FinancialStrategy #TaxPlanning #AIinFinance #SustainableInvesting

💀 Venture Capital is Dead… Or at least that’s what many doomsayers would have you believe. Let’s cut through the noise though. Venture Capital isn’t dead. It’s simply evolving. The era of cheap capital and seemingly unlimited liquidity has ended. Rising interest rates and a lack of liquidity have dramatically reshaped the venture investing landscape, forcing investors and founders to adapt or die. This new funding environment emphasises 3 things: 💰 Capital Efficiency -- Startups are now expected to demonstrate clear paths to profitability and sustainable growth. 🔎 Selective Investing -- VCs are becoming more discerning, focusing on startups with solid fundamentals. 💡 Innovative Funding Strategies -- Alternative financing methods are gaining traction as traditional VC models face challenges. Enter Seedstrapping 🌱 Founders can now raise modest seed rounds and leverage AI to scale with far smaller teams. This allows startups to: 🔒 Maintain control: With less capital raised, founders can avoid significant dilution. 🤖 Operate lean: AI and automation reduce the need for large teams, enabling rapid iteration and scalability. 🧱 Nail the fundamentals: A focus on product-market fit and customer acquisition from the outset. For seed investors, this approach offers the potential for higher returns due to reduced dilution. But it also presents a major challenge... Without significant follow-on rounds, it’s harder to show markups to LPs, which can impact future fundraising efforts. Top-tier firms are also shifting their approach to venture: Lightspeed Venture Partners became a Registered Investment Advisor (RIA), allowing them to invest in public stocks, secondary shares, and pursue buyouts. Andreessen Horowitz (a16z) launched a wealth management arm, behaving more like a governance-heavy private equity firm. Sequoia transitioned to a single evergreen fund structure, moving away from the traditional 10-year fund cycle. These shifts signal a broader trend: large multi-stage firms are now blending with private equity. 🎯 This presents an opportunity for early-stage investors. Multi-stage firms moving further into growth funding, combined with the death of many early-stage firms who can't raise another fund after the ZIRP era, means less competition for access to the best seed opportunities. And with Seedstrapping, those seed investors can realise material returns earlier, thanks to the impact of reduced dilution, and the speed and efficiency gains as a result of startups leveraging AI. The next decade will be a fascinating and exciting one! Onwards and upwards 🚀

The Future of Nonprofits: 5-Year Outlook The landscape is shifting - fast. Thoughts on key trends emerging at the intersection of philanthropy, partnerships, and impact: 🔹 Power Shift to Local Funders moving resources directly to local organizations. Expect more locally led organizations to lead the change - with equity and trust at the core. 🔹 AI & Tech for Social Impact AI is not a buzzword anymore. It’s helping nonprofits map donors, craft proposals, and show real-time impact. Those who adapt early will stand out. 🔹 New Funding Models Think beyond grants: blended finance, recurring giving, donor-advised funds, and unrestricted multi-year support gaining ground. 🔹 Impact & Systems Change Donors wanting more than outputs. They want bold, measurable shifts - in policy, behavior, or economies. Nonprofits must show how their work moves systems, not just metrics. 🔹 Climate + Everything Climate is no longer siloed - it’s now deeply tied to gender, education, health, and livelihoods. Intersectionality as new standard. 🔹 Transparency, Inclusion, Accountability More scrutiny around governance, community engagement, and representation. Donors wanting to see who’s at the table - and who’s missing. 🔹 Partnerships Will Define Influence Those that collaborate across sectors - government, philanthropy, private - will shape the next wave of solutions. What shifts are you witnessing in the sector? Would love to hear your perspective. #Philanthropy #NonprofitLeadership #AIforGood #Fundraising #DonorEngagement #ClimateAction #LocallyLedDevelopment #SystemsChange

Funders are pivoting their funding strategies. Here's why: 1. They want to avoid retribution, attention or worse being shut down by the current government (not just in the US but even in other places too). 2. They recognize their funding may not go as far to organizations that need SO much more than they have in the "before times." 3. There's an opportunity to try different approaches and take some new risks. So what will change because of this? A) Funder priorities may not be as obvious, communicated or pronounced, and grantee partners will be identified in a more subtle way to avoid attention. B) Funders will be trying new ways of making their money go farther (could be via collaboration, could be via new funding mechanisms, could be via dabbling in investing, or other!) C) Funders will fund less often, but in a deeper, more meaningful way. We will continue to see awards, calls for proposals and traditional open calls. But the "unsolicited calls" will be more standard practice, and it will be harder to get the "real" info from funders as they figure out this new normal for themselves. Do you see this taking shape already in your work?