In recent years, the startup ecosystem has undergone a significant transformation. During the sector boom, between 2015 and 2021, investors prioritized those that were growing rapidly, without concern for long-term financial stability. However, with the global rise in interest rates starting in 2022 and the consequent reduction in the volume of risk investments (venture capital), the strategy became unsustainable. Today, the market demands solid financial models, balance between growth and profitability and a clear path to profitability.
Growth continues to be a relevant factor, but it needs to be aligned with a sustainable strategy. Instead of companies that grow 300% a year burning cash, investors prefer those that grow 100% in a healthy way, without compromising the financial structure.
The end of growth at any cost
The era of "crescimento a qualquer custo"growth at any cost" gave way to a new mindset. The market is now seeking businesses with long-term viability. Organizations that generate cash or are close tobreak even(break-even point) are the most attractive, as they reduce the dependence on constant rounds of funding.
The change reflects the maturation of the sector. Startups that previously managed to raise millions based solely on ambitious projections now need to present solid governance, operational efficiency and concrete metrics that prove its sustainability. Transparency in financial processes and strict cost control have become decisive factors for attracting investments.
Most valued metrics
Operational efficiencyinvestors seek organizations that know how to optimize costs and improve margins, with solid financial foundations and well-structured processes.
Recurring revenuesubscription-based business models or long-term contracts are more attractive, because they ensure predictability and security.
Revenue increaseconsistent growth indicates that the company has found a solid market and has expansion potential without compromising financial health.
Cash burnorganizations that maintain strict control over spending are seen as better prepared to face economic challenges and avoid excessive reliance on new funding.
More selective and mature market
The euphoria phase of investments in startups has given way to a more discerning scenario, as a result of the significant change in the mindset of investors, that now seeks companies with solid governance, well-structured processes and financial efficiency. For entrepreneurs, this means that fundraising requires much more than a good story: it is necessary to demonstrate that the business has the structure to sustain and grow in a balanced way. The market is more mature, and those who can adapt to this new reality will have a better chance of thriving and attracting investments in the long term.
