What will be the impact of the corona virus in raising new funds?
March 18, 2020
by a searcher
in Madrid, Spain
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8Replies
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by a searcher
from Cornell University
in Vancouver, BC, Canada
In the short term, there will be some pain given the high level of uncertainty. to ^redacted's point, current SF investors will spend majority of their time working with their current portfolio companies and will not have excess capacity to fund new deals. However, with the QE machine restarting across the globe, I don't think funding will become an issue once the dust settles. My take is to use the downtime for industry analysis and look at brokered deals as a way to ramp up industry knowledge. There is no point searching if meetings cannot take place and people worry about the health of their family, employees, and many other affected by COVID-19.
This outbreak will change the way we live, work, and interact, so that means business models need to adapt to new best practices. There will be opportunities for searchers. To everyone searching right now, hang in there!
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by a searcher
from The University of Chicago
in Chicago, IL, USA
Most investors are focused on cash & liquidity management, cost cutting, communication, and business continuity planning for their portfolio companies (see Rich Augustyn's Covid-19 playbook, https://www.linkedin.com/pulse/ceos-covid###-###-#### day-playbook-richard-augustyn/). I would expect most investors to push out calls with new searchers at least a couple of weeks as they focus on managing existing investments.
That said, business owners will still have to retire over the next few years, so the value proposition of a searcher will still exist, and funds with committed capital will still have money to deploy. Just expect searching to be harder and take longer depending on how long the recession lasts.
from Cornell University in Vancouver, BC, Canada
This outbreak will change the way we live, work, and interact, so that means business models need to adapt to new best practices. There will be opportunities for searchers. To everyone searching right now, hang in there!
from The University of Chicago in Chicago, IL, USA
That said, business owners will still have to retire over the next few years, so the value proposition of a searcher will still exist, and funds with committed capital will still have money to deploy. Just expect searching to be harder and take longer depending on how long the recession lasts.