I think most of them People would agree that 2023 was a tough time to be a startup. There were many layoffs as companies struggled to make the transition from growth to profitability. Meanwhile, sales cycles were longer and many startups struggled to grow at a decent pace.
As we start to see the economic signals improve a bit decline in inflationThe cost of money falling, and most currency headwinds diminishing, you’d think 2024 might shape up to be a better year.
Not necessarily.
We’re in a new era where money won’t flow as freely, and according to the experts we spoke to, we won’t see another recovery anytime soon. That means startups that aren’t well-capitalized right now could still struggle in 2024, and the flipping of the calendar isn’t going to change that.
What does all this mean for startups entering 2024? It means they have to prove their worth more than ever. It means they need enough cash to get through long sales cycles. It means they have to fight for their share of business budgets, and potentially 2024 could look a lot like 2023.
Budget prospects
A good starting point for budget discussions is to show the proposed budget. Analyst firms such as IDC and Gartner forecast IT spending each year, although they generally adjust throughout the year as the reality becomes clear.
IDC forecasts growth of 6.8%, up from 5% last year. This number considers hardware, software and services, but excludes any telecommunications costs. Meanwhile, Gartner forecasts slightly higher at 8.2%.
The general upward trend should be good news for startups, which are looking for business buyers to scale their businesses. But John-David Lovelock, a Gartner analyst who looks at IT budgets, says that while 2023 was a year of becoming more efficient, that doesn’t mean it just ends with the new year.
