Unlimited growth stalling and so-called “burning” of funds – after cumulatively raising funds in 2021 – puts several tech startups looking to move towards monetization and achieving organic profitability in order to survive in a difficult investment situation. environment . This new strategy has also been adopted by Greek start-up companies, especially those that need a lot of capital to support their business model, while limiting both their spending and their growth plans. Although Greek startups have not raised funds at grossly “inflated” valuations, they have recently been more cautious about managing their funds, as well as hiring new employees.

Startups limit their spending and aim for organic profitability.

“We will adjust our business plan with more thorough and strategic development steps,” he said in an interview with K. Alexandros Hacielebertiou, founder and CEO of Blueground, a furnished home rental company. “Our plan in a more ‘normal’ economy was to ‘open’ a new city every month, but due to conditions, the company may be entering new markets at a slower pace,” he noted, saying the company is focused on achieving profitability. . Blueground manages approximately 10,000 apartments worldwide and has a presence in Europe, the US, the Middle East and Asia. “We remain committed to going public in the coming years and when the market turns around we will.” The reason for this profitability imperative is the investment environment, which has been affected by inflation, recession and rising borrowing costs. Tellingly, according to crunchbase, European investment fund funding to startups in the third quarter of 2022 fell 44% year-on-year, from $28 billion to $16 billion. As for Greece, market participants see startup funding this year has dropped sharply compared to from 2021, mainly for new startups. In fact, several Greek funds are now directing more funds to support companies that are already in their portfolio so that they do not face liquidity problems. “This does not mean that we will see one company after another close in Greece, but it needs attention,” says a partner at a Greek investment fund that invests in startups.

The strategy to achieve profitability by 2023 in all markets in which it is present (Greece, Germany, Poland and Romania) is also developed by Spotawheel, which buys and resells (after conducting the necessary checks) used cars. using technology. In an effort to control costs, Spotawheel has included high-priced services previously provided by external partners (such as vehicle preparation) and has accelerated the introduction of used car rental services to create a new source of income, a company spokesperson said. And the hiring rate is declining compared to the pre-crisis period.