Curious about the interplay between economic downturns and investment patterns? Step into the arena of engine investing, navigating through its ebbs and flows, reactions to recessions, and evolving investor inclinations:
📊 Fluctuating Investment Trends: Engine investing during recessions has experienced both ups and downs, but primarily an upward trajectory since the recovery from the 2010 recession.
💸 Increased Flow of Funds: Over the past few years, there has been a steady increase in money flowing into the market, with S&P and Visa funds showing consistent growth.
🦠 Pandemic Impact: The onset of the pandemic initially posed a risk of recession, but government support, stimulus checks, and increased purchasing power have extended the economic recovery.
🛍️ Expansion of Consumer Spending: Enhanced purchasing power has resulted in higher consumer spending on software, apps, subscriptions, and other goods, leading to over-hiring by companies.
🔀 Shift in Investor Preferences: With the recession and devaluation of unicorn startups, investment focus has shifted from larger conglomerates to pre- and seed-stage startups.
🌱 Favorable Landscape for Early-stage Startups: Early-stage startups that demonstrate profitability or controlled burn rates are increasingly attractive to investors, offering a greater chance of success with the right funding.
📉 Decreased Funding in Higher Tiers: The overall funding landscape has diminished in higher investment tiers, with fewer funds being allocated to large conglomerates and multinational companies.
💡 Rise of Creative Business Ideas: The recession has sparked a surge in creative business ideas, providing more opportunities for angel investors to engage with startups facing the larger crisis.
👼 Accessible Opportunities for Angels: Angel investors now have access to a wider range of investment opportunities, including pre and seed-stage startups, which continue to attract interest from larger funds.
As you already may have guessed, I love the angel investing community and always looking into the right deals to invest in.
In the meantime, I’m sharing business tips following the latest macro news with 6,700 of my subscribers.
Flow of funds into the market in recent years
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The Author
Mario Peshev is a serial martech entrepreneur, global business advisor, angel investor, and author, famous for launching a top 20 enterprise WordPress consultancy and authoring the modern startup formation book, “MBA Disrupted.”
His digital footprint includes 25 years of creating and scaling technical solutions, building and growing digital teams, starting and growing companies from zero to seven figures, acquiring and selling assets and businesses, and investing in global startups like beehiiv, doola, the Stacked Marketer, Alcatraz, SeedBlink.
Peshev spent over 10,000 hours in consulting and training activities for organizations like VMware, SAP, Software AG, CERN, Saudi Aramco since 2006. His books and guides are references in over 30 universities in North America, Europe, and Asia.
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