Vital Signs - June 2024

Hi Gang,

As we round the mid-point of 2024, I’ve missed you guys and felt another Vital Signs coming on! How’s everyone feeling out there? I’m searching for how to characterize the year (and welcome your adjectives and emojis!). The best I can come up with is:

 JPM felt exuberant… perhaps suspiciously so, but we are nothing if not optimistic in this business. By March, IPO expectations waxed and waned (and seem to be waning at the moment). Decision-making has felt very, “Hurry up! Wait. OK hurry up! Wait…” On the plus side, investors have generally done well this year thanks to some significant exits. We have what appears to be a K-shaped recovery… some companies are raising and persevering, while others are really struggling. Investors like to bet on winners (companies and people), so success begets success. Unfortunately, that means it has been a difficult road for companies and people who have hit up against headwinds.

On the talent front, that has translated to a few things, some consistent with my Q4 2023 observations:

• Experience wins the day. In a fickle market, boards are prioritizing leaders who have been there/done that over to first-timers. (If you are attempting to step into the C-suite for the first time, consider the benefits of working with and for an experienced management team vs. racing to the top. There are some critical learnings in times like these, and you have plenty of time to jump into a hotter seat!)

• Fundraising never goes out of style. Candidates with a track record of raising money are in high demand. If not in the lead chair, boards want to know they were involved in the conversation. (Take note as you career plan.) THAT SAID…

• Gas in the tank matters. Candidates want to know a company has at least a year+ of financial runway, ideally 18+ months. (If your company does not, consider consultants and/or other advisors rather than full-time hires. And realistically… you ought to be thinking about strategic alternatives in parallel.)

• Some people moved, y’all! You will have more and better candidates if you are open to a commuter. (I know. I know. You DON’T. WANT. a COMMUTER! I hear you. Just delivering the data… companies open to this are getting a better response.)

Since – like most of you – I chucked my crystal ball out the window in 2021, I’m out of the predictions business. Layer on 64 global elections, a convicted felon running for office, and low likelihood of interest rate cuts, and I’m liking my emoji choice for the 2H 2024 as well. On a personal note, I have traded my retreat in the redwoods for blue skies and vineyards. A fresh perspective never hurts, and quite literally, things are looking up 😊 Wine recommendations flow freely up here, so please hit me up any time!

 Does this resonate with you guys? As always, I look forward to your thoughts!

Stay well!

Jackie