Startup Funding

How Are Startup Investors Reacting to the Coronavirus Economy?

The Coronavirus has sent the stock market into a wild ride of 1000-point swings every day.

In talking with investors, I find the following:

Early-stage investors continue to move forward with their investment plans. Later-stage investors are putting their investments on hold to see how the economy sorts out.

Funds which have already raised their capital continue to do business as usual.

Many investors are shifting their attention to their portfolio companies as a first step to ensure they have access to capital.

Other investors are moving their investments into the higher-quality deals with stronger traction.

Valuations are starting to come down with some investors moving aggressively into the market as they see it as a strong buying opportunity.

Lenders are in the market as always, with their same criteria.

Investors look for startups that are finding a new growth story in the Coronavirus economy and will prioritize those investments.

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