With IT spending forecast to rise in 2023, what does it mean for startups?

Startups

It depends on how integral you are to the CIO’s plans

Although we’re in a period of economic uncertainty, I come bearing good news: All signs point to IT spending going up in 2023. By all rights, that should be outstanding tidings for startups. It’s not all rosy, however, because in times of turbulence, startups really have to prove their worth.

Companies recognize that they must keep one eye on the future and that innovation tends to happen at new companies, not those supposedly trusty older ones. Sure, the tried and true may have solid balance sheets, but they also perhaps stagnated in the idea department sometime around 2012.

CIOs need to balance established players with startups as they set their IT budgets for next year. Startups building essential services in an innovative way should have fewer worries.

“Lots of strategic CIOs have used the combination of remote work and the downturn to modernize their stack and replace legacy systems with more modern solutions.” Casey Aylward, partner, Accel

Execs clearly want to invest in your startup’s innovation, but they are wary, especially in times like these, of putting all their eggs in your startup basket. It’s understandable, so you have to show that you’re in it to win it.

We spoke to a number of CIOs, venture capitalists and analysts to get their perspective on what’s coming for enterprise startups in 2023.

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