[V+ Perspective] Winter is the Ultimate Litmus Test: Why Scarcity Creates Great Companies

Chin-Yuan Yang
1 day ago
3 min read

When the tide goes out, true value is revealed.

As global capital liquidity decreases, many founders are feeling anxious about "slowing growth" and "fundraising difficulties." But in fact, this is not entirely a bad thing.

Growth during tailwinds is often filled with noise; survival during headwinds reveals true strength. For companies dedicated to solving fundamental business problems, winter is not a disaster—it is a necessary process of "separating the wheat from the chaff." Scarcity is often the starting point where great companies are born.

1. Market Winter is the Best Filter for "False Needs"

When capital is abundant, even "nice-to-have" products can create an illusion of prosperity through massive subsidies. When user habits are bought with money, founders can easily misjudge that Product-Market Fit (PMF) has been achieved.

However, when resources are limited and subsidies stop, the truth emerges. This is the most authentic moment to test a product: "After taking away the marketing budget, are users still willing to stay?" or "Does the churn rate spike after subsidies are removed?"

Winter forces founders to honestly face product deficiencies, stop blind spending, and refocus on solving real "Pain Points."

2. Reject Vanity Metrics, Return to "Self-Sustainability"

Continuing our warning against "blind expansion," startups must establish a "deep cultivation mindset" when resources are limited.

Please shift your gaze from "Vanity Metrics" like GMV or registration numbers to the health of the enterprise:

Unit Economics: After deducting costs, does every transaction truly contribute profit?
Cash Flow Health: Can your self-sustainability support the company through the winter?

At this stage, the key to survival is not the speed of scale expansion, but the robustness of your business constitution.

3. Great Enterprises are Often "Born of Necessity"

History shows that many great companies were born during recessions because "constraints" are catalysts for creativity, while "abundance" is often the killer of efficiency.

When budgets are unlimited, people tend to "spend money to solve problems"; only when resources are limited are you forced to think: "How can I achieve 80% of the results with only 10% of the resources?"

In fact, this extreme efficiency and innovative problem-solving, forced by circumstance, will become the company's future moat. The highly efficient operational model honed during the trough will not become obsolete when the economy recovers. Instead, it allows you to run faster at the same cost and strike deeper at the same scale—because true competitiveness is not about "how much you can spend," but "how much certain outcome you can generate from every penny invested."

Conclusion: Growth is not just about speed in tailwinds, but navigation in headwinds.

VENTURE+ believes that excellent startups are defined not just by unique business models, but by the team's reaction mechanism to adversity.

The value of a team is seen not only in how fast they run when the wind is at their back, but how they steer when the wind is against them. Teams with "Antifragile" qualities know how to use pressure to evolve, turning crises into opportunities.

Winter will eventually pass, but the strong constitution built during the cold is the key to a company going the distance. VENTURE+ always supports those founders who are willing to return to business fundamentals and persist in solving real problems even in adversity.

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About VENTURE+

VENTURE+ specializes in SaaS and AI investments, offering more than just funding. We provide startups with strategic guidance, corporate partnerships, and capital market planning. We aim to be the "Best Co-Founding Partner" bridging startups, venture capital, and industry leaders in long-term collaboration.