2023: An Exercise in Resilience

As we wrapped up our fiscal year here at DTC, we had an opportunity to reflect on another year of challenges for young companies building for the enterprise. Those headwinds have already been written about in volume. So, what may be worth spending a few words on is the resiliency we’ve seen.

Over the past year venture dollars were harder to come by and founders were forced to make tough decisions about their teams, products, and in some cases the viability of their companies. This meant considering a future with significantly more constraints on innovation investment and growth opportunities.

What’s happened is, as it often does, founders and startup leadership teams rose to the occasion. They reconsidered staffing and product development, focusing on what would matter most to their customers. They tapped their networks of investors, advisors, and mentors for guidance and made a lot of tough decisions. While those decisions are hard in the moment, they help the best leaders forge new skills and ultimately increase the competitiveness of their companies.

We’ve seen companies across cybersecurity, infrastructure, data, silicon, SaaS, and logistics get serious about scale. They’ve crossed $100M ARR and $200M ARR and many are on track to being cashflow positive operations. They are winning customers, taking market share, and being recognized by their industries. Importantly, they are now disciplined in a way that allows them to dictate their path to exit.

We’re an experienced group here who’s been through five, maybe six business cycles like this. As an investment team, we are inspired by the exceptional founders and teams who pull through the troughs and by those who despite the tumult have chosen to start something new right now. You are why we are in this business.

If you’re building for what’s next in enterprise technologies, we’re open for business and want to hear from you.

Scott Darling & the DTC Team