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Today’s venture capital ecosystem looks markedly different from even just five years ago. Most significantly, a small number of AI companies are now attracting the vast majority of available venture capital. In Q1 2026, just four companies collectively raised $188 billion, which alone accounted for 65% of total global venture investment, per Crunchbase data. Meanwhile, in that same quarter, just 20% of global VC funding went to non-AI firms. Deal count was also down 30%, meaning that checks are being made out to fewer companies all around. So what happens to startups when the VC route is all but closed? I built a company into a multibillion-dollar business without any venture funding. Here’s a few lessons I picked up along the way: Prioritize customers and revenue, not fundraising Many founders unknowingly treat fundraising as a measure of success. But while it’s useful, funding doesn’t result in success on its own. Achieving strong levels of customer trust is also helpful when it comes to inspiring investor confidence. High retention rates, repeat purchases and sustained engagement drive the financial fundamentals on which strong valuations are built. In B2B SaaS, for instance, companies with net revenue retention above 110% are valued at 2.4x the median. Additionally, customers provide a feedback loop that helps create the discipline every company needs, and each user is a vote of confidence that compounds over time. Going to market: Take time on pricing strategy Too many early-stage companies set prices too low because they fear that higher prices will repel customers. In my experience, however, underpricing more often signals uncertainty rather than good value. Customers want quality products and services, and they expect that the quality will be reflected in the price. Incredibly, only 22% of B2B SaaS firms conduct rigorous pricing research, and firms more commonly regret underpricing than overpricing. So at the outset, it’s important for startups to inform themselves what price their product or service can actually sustain, and then raise quality if it’s too low. Equally, in services markets where prices are more established around a norm, superior quality can be an important differentiator. At the same time, however, companies must continually resist the temptation to chase customers with ever-cheaper prices, which can start a race to the bottom. Hire the best talent Too many founders hire for speed rather than quality. Take the time needed to raise the bar with talent. Hire the right people, and they’ll help maximize every last drop of value. Many years ago, I decided to focus on just a small fraction of our applicants and hire only the top 1% of talent. When we found the best developers, it meant we could compete on delivery quality rather than just price. Keeping costs low is important, but skimping on talent is not a winning strategy. Use process automation efficiencies to drive growth One of our best decisions was to replace manual hiring processes with proprietary machine-learning systems at an early stage. Not only do these systems screen developer applications, but they can also build, match and deploy top-quality teams for each client project. This advance allowed us to cut costs associated with evaluating applications, accelerate lead times, and improve the quality of our teamwork. In parallel, we also invested in creating similar systems for our digital marketing so that growth wouldn’t require proportional increases in overhead. Whether it’s in recruitment, sales or operations, process automation can create some of the biggest drivers of growth and help bring about conditions needed for significant expansion to occur. Operate as if cash is running out tomorrow Companies thrive in challenging funding environments by operating with discipline. That means obsessing over unit economics, prioritizing activities that directly drive revenue, questioning every cost, and eliminating anything that isn’t pulling its weight. Not only does this aid growth, but it also makes a business more resilient in hard times. Financial constraints drive leaders to create efficiencies by automating workflows, streamlining processes and inventing innovative work models. Years before COVID-19 forced others to follow our lead, our company streamlined its operations and boosted scalability by developing a remote-working model. When the pandemic made remote work necessary, the fact that we already had the systems and workflows in place gave us a competitive advantage over other firms, and this in turn led to significant growth. Long term: Stay married to the problem, not the solution The past decade convinced many founders that venture capital was the default path to building a meaningful company. But while funding cycles rise and fall, the fundamental principles of good business don’t. Infusions of capital can accelerate growth, but they cannot create a great company from scratch. On the longest timescale, the most successful founders are the ones committed to solving problems rather than just selling a product and chasing funding. In a world short on funding, growth simply can’t happen without it. Nacho De Marco is the founding GP of BDev Ventures, and chairman of BairesDev, one of the largest bootstrapped nearshoring companies worldwide. Driven by his entrepreneurial spirit, he launched BDev Ventures in 2021 to help B2B companies accelerate their growth through a proprietary lead-generation platform. He also invests in and serves on the boards of biotechnology and e-learning companies. In recognition of his career path, he won distinctions such as an EY Entrepreneur Of The Year 2024 Bay Area Award. Related reading: Illustration: Dom Guzman Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.
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