HOW HAS THE COVID19 EPIDEMIC EFFECTED YOUR CAPITAL RAISE??

March 31, 2020

by a searcher from Holy Names College in Berkeley, CA, USA

I launched my traditional fund capital raise in February and since this breakout, I have been getting responses from investors that they are putting a lot of energy and focus into their portfolio companies during this time. What has been your interaction with investors and are any of you strategizing to hold off on contacting investors until the landscape resembles some picture of normalcy or are you going to keep pushing forward as everything is a "numbers game"? You love to hear your insight, thanks!

Reply by a searcher
from University of Pennsylvania in Chicago, IL, USA

I would acknowledge the situation - *but* - keep the following in mind: 1. There is never a perfect time to do anything###-###-#### There are plenty of businesses that are either not impacted by the crisis - or are making more money because of the crisis; which means that the crisis also affects investors differently. Some will be crushed by this. Some will have benefited. As such, be mindful of that - but I say keep going. Also, if all others are quitting the capital raise, that means you will have less competition! Good luck.

Reply by a searcher
from INSEAD in Praha, Česko

Agree with all mentioned above - I stay in touch with the investors, collecting soft commitments only with a disclaimer that we will reopen at the end of summer or once the recovery projection is more clear. Many investors are quite conservative by nature, expecting L/U curve until we have a vaccine so I wouldn´t push too much as it could backfire. Doing a self-funded search until then.

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