{"id":11439,"date":"2023-02-16T17:26:43","date_gmt":"2023-02-16T11:56:43","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=11439"},"modified":"2025-02-20T02:39:50","modified_gmt":"2025-02-19T21:09:50","slug":"rtx-funding-winter","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/business-banking\/rtx-funding-winter\/","title":{"rendered":"RTX Bangalore &#8211; What Founders Learnt From the Funding Winter"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">RazorpayX has always been at the forefront of innovation &amp; meaningful collaboration with startups.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A productive alliance is only possible when we learn from each other &amp; build a community of like-minded individuals who share the same vision. The first step towards creating this engaged community came in the form of RazorpayX RTX where we invited a couple of founders who are united under the same cause of growth and are dealing with similar issues.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With RTX, RazorpayX aims to bring founders together for meaningful conversations. to the founders themselves.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When funding winter is mentioned in business circles, the narrative oscillates between two extremes: there is talk about how bad the funding winter is, but also about \u201cwhat funding winter?\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We invited founders of successful businesses like betterhalf.ai, ShopFlo, Paycrunch, and ChangeJar to speak with Anand Krishna, a seasoned start-up founder &amp; CEO of Inkle. This power-packed panel discussed the impact of funding winter on the larger business community &amp; strategies that they have employed to counter this impact.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What did these founders learn from the funding winter, and what can we learn from them?\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dfc605e2242\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dfc605e2242\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/rtx-funding-winter\/#What_Founders_Learnt_From_the_Funding_Winter\" >What Founders Learnt From the Funding Winter\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/rtx-funding-winter\/#Renewed_Focus_on_Financials\" >Renewed Focus on Financials<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/rtx-funding-winter\/#A_User-First_Approach\" >A User-First Approach<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/rtx-funding-winter\/#The_Best_of_the_Best\" >The Best of the Best\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/rtx-funding-winter\/#Flexible_Solution-Centric_Strategy\" >Flexible Solution-Centric Strategy<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/rtx-funding-winter\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Founders_Learnt_From_the_Funding_Winter\"><\/span><b>What Founders Learnt From the Funding Winter\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Renewed_Focus_on_Financials\"><\/span><b>Renewed Focus on Financials<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s important to build a business that <\/span><i><span style=\"font-weight: 400;\">lasts. <\/span><\/i><span style=\"font-weight: 400;\">To do this, a razor-sharp eye on business fundamentals in the form of your P&amp;L and contribution margin will be key to keeping your growth plans on track.\u00a0 on running your business mathematically, keeping a sharp eye on your P&amp;L and contribution margin.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The contribution margin is the amount of revenue left after variable costs have been deducted from total sales. A very low contribution margin might make your business seem less attractive to investors because it shows that your expenses are eating into your profits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One of the best ways to improve your contribution margin is to cut down expenses and make your current expenses more efficient.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The focus has to be on building your business to last \u2013 make sure that by default, your business stays alive. Take those extraordinary measures in the initial stages to create a default state of\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"A_User-First_Approach\"><\/span><b>A User-First Approach<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The key<\/span> <span style=\"font-weight: 400;\">is to create very sticky products that are user-centric. Once you understand your industry and target audience, founders develop confidence and conviction around their products.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Without conviction, it is difficult to stay true to one path \u2013 founders without confidence tend to pivot the product or change their approach, which both confuses and causes mistrust among customers and investors.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is also vital to know exactly what your business needs and when it is needed \u2013 some businesses like ChangeJar need patience capital, and this knowledge only comes with a deep understanding of your product, the business, and the market.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_Best_of_the_Best\"><\/span><b>The Best of the Best\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Talent is important. It could be the single most important dimension of your business, and it\u2019s up to you to make sure that the people that make up your business are the absolute best.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is most important for startups since young businesses have smaller teams. Taking a product from zero to market requires bright minds and even brighter attitudes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To build a solid work culture and foster creativity, innovation, and the best ideas, choose a high-quality, solid team.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Flexible_Solution-Centric_Strategy\"><\/span><b>Flexible Solution-Centric Strategy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Most new-age businesses are today delving into realms never touched before \u2013 neobanking, NFTs, and cryptocurrencies. Most of these industries are so new that there is no regulation or policy around them.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As policy catches up to these new-age business models, compliance issues may arise that founders will have to accommodate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keeping your <a href=\"https:\/\/razorpay.com\/learn\/what-is-a-business-model\/\">business model<\/a> flexible enough to accommodate external factors like policy changes, and macroeconomic instability like the funding winter and focusing your strategy on sustainable growth is something we can all learn from this recent fund crash.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b>Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Every founder at the RTX table had an interesting story to tell \u2013 from financing to hiring talent. Trends say that we are at the end of this funding winter, but if you know economic cycles, you know this won\u2019t be the last.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hopefully, the tips from these successful founders and our handy <\/span><a href=\"https:\/\/razorpay.com\/blog\/business-banking\/funding-winter-is-here\/\"><span style=\"font-weight: 400;\">guide<\/span><\/a><span style=\"font-weight: 400;\"> will help you navigate the choppy waters of the next funding winters to come.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>RazorpayX has always been at the forefront of innovation &amp; meaningful collaboration with startups.\u00a0 A productive alliance is only possible when we learn from each other &amp; build a community of like-minded individuals who share the same vision. The first step towards creating this engaged community came in the form of RazorpayX RTX where we<\/p>\n","protected":false},"author":106,"featured_media":11467,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[27],"tags":[439,438],"class_list":{"0":"post-11439","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business-banking","8":"tag-funding-winter","9":"tag-rtx"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/11439","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/106"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=11439"}],"version-history":[{"count":1,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/11439\/revisions"}],"predecessor-version":[{"id":20796,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/11439\/revisions\/20796"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/11467"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=11439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=11439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=11439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}