In the age of coronavirus, VCs are looking for creative ways to get to know founders, including meeting six feet apart.
As more venture firms become accustomed to virtual pitches, they’re emphasizing reference checks and setting up multiple Zoom calls as a way to verify their investments and better get to know the founders.
One of the world's leading mutual funds has taken advantage of its Silicon Valley location to become a meaningful VC player. Over the last five years, the firm invested nearly $1bn in late-stage and mid-stage venture capital deals.
More than $273m has gone into the sector so far in 2020, already surpassing the full-year totals of four of the last five years.
Tax changes in the US, China’s crackdown on high-growth sectors and Europe’s increasing protectionist policies will also impact dealflow, according to a report by the law firm Dechert.
Investor interest in edtech is expected to continue in a post-pandemic world, according to Tory Patterson of edtech-focused Owl Ventures, who says that we will soon see some good IPO candidates.
As some venture capital firms and individual VCs dip their toes into the SPAC-sponsorship waters, LPs are figuring out how to deal with potential conflicts and benefits. Some attorneys have advice, too.
The sector is on track to outpace the wider VC market, according to a recent PitchBook report. But as interest rates remain low, venture debt could become just as popular as equity in VC.
These investors have piled money into the industry over the last 10 years, and in the midst of a pandemic aren’t pulling back or going anywhere.
The sector has been slow to digitize but with consumer attitudes toward the market changing quickly innovation is imminent.