---
title: "Operating in the Dark"
description: "Navigate startup challenges in today's market: strategies for extending runway, adapting to slower sales cycles \u0026 maintaining focus during market uncertainty."
categories: ["fundraising"]
keywords: ["Theory Ventures","venture capital","startup challenges","fundraising strategies","sales cycles","cost reduction","product-market fit","M\u0026A market","IPO market","startup runway"]
ai_summary: "Explore strategies for startups to navigate fundraising challenges and adapt to changing market conditions."
date: 2023-07-20
lastmod: 2026-07-30
canonical_url: https://www.tomtunguz.com/its-supposed-to-be-hard-2/
author: "Tomasz Tunguz"
---

For many startups today feel like they are operating under dark skies. [It's supposed to be hard - you're changing the world](https://tomtunguz.com/its-supposed-to-be-hard/). 

Reflecting on the last three quarters  : 

Startups have parted with colleagues to extend runway in a difficult fundraising market. 

Some have significant balance sheets & discovered the ostensible product-market fit isn't as strong as the business may have believed.

Muted valuation multiples have replaced the neon pink sticker price valuations of the early 2020s. 

Customers' buying [processes have slowed](https://tomtunguz.com/pipeline-sales-cycle/), creating pipeline shocks that challenge sales forecasting. 

Cost reduction matters more than other value propositions which has required both product & marketing shifts to meet the market.

The M&A & IPO markets are quiet.

This is the part of the startup cycle that's the grit-your-teeth grind. 

Some startups focus on product development. Others focus on [winning competitive share by investing in sales & marketing](https://tomtunguz.com/lee-kirkpatrick-office-hours-notes/). 

Having that focus enables companies to continue to execute through the dark skies & maintain a level of urgency in the organization throughout the storm to be well positioned once the rain abates.