Every startup wants an extension tour, but there isn’t enough to go around – TechCrunch

as investment financing Founders continue to slow down, rushing to extend their runways, no matter how much cash they already have in the bank. But startups that desperately need an injection of cash face the most problems.

Last week, I wrote about the current state of bridge financing after many pre-investors began receiving emails from companies — some in desperation — for more time in the form of cash. For investors, it looked like everyone was struggling. But while the founders say it’s hard to ramp up the increase across the board, it seems to be more difficult for some than for others.

Wael El Chouf, co-founder and CEO of Reyets, a social justice app that helps people discover their rights in different situations, believes it will be more difficult for founders like him who target impact-driven stories. He told TechCrunch that his company had multiple verbal commitments to fund the bridge this year — ahead of the appropriate round next year — but that all of the investors pulled out just weeks before the checks were written.

‘Investors are responding to [startups] They are more sure bets than early and unproven bets. “For us in the space of influence, the line between a business firm and a utility or social enterprise makes it [the investment opportunity] Much more difficult to digest than to manufacture a widget, for example.”

Venture capital also appears to focus on supporting startups that already have useful revenue numbers and client bases. David Astoria, founder and CEO of broadcast media startup Pranos, attributes most of his company’s recent bridge funding success to its current appeal. He believes that the fact that Pranos already has cash in the bank has been a huge positive for its investors.

“I think the barrier with these bridge financing investors is that you have to prove that you are really building the bridge,” Astoria said. He added that a banker recently told him, “We can help you build a bridge, but we’re not trying to help you build a pier.”