Tech companies adapt to the scarce funding environment

Technology companies have historically relied on significant investment to rapidly grow, build and hire. However, with less available capital, timelines for tech companies to exit have been postponed until exit opportunities re-open in the form of acquisitions or IPOs.

Tech companies must innovate strategically to secure limited investment and extend their runway. Given economic pressures, delayed funding rounds and fewer exit opportunities, many are pivoting toward business optimization and alternative financing.

Business optimization

When a tech company is burning more cash than it has coming in—whether through investment or revenue—reviewing current processes and operations is essential, eliminating inefficiencies and streamlining redundancies to focus on high-value people and projects. Many tech companies are adopting workflow automation software tools to optimize ongoing projects, meet deadlines and eliminate redundant activities. Recently, tech companies have embraced the “do more with less” model, but there is, and needs to be, a balance between growth in the right areas and cost cutting.