COVID-19 made its way across the globe, venture capital firms, venture capitalists, and startups alike feared major venture funding slowdowns. The global Coronavirus pandemic has left startups bruised and battered. Liquidity has been dried up for investors to deploy surplus capital into new ideas.
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Over 62 percent of startups and early-stage investing community will experience the impact of COVID-19 for up to two years before things settle down. According to a survey by famed seed accelerator and early-stage venture fund 500 Startups. The final step is to restructure the messaging to the investors. Since investors tend to back up businesses with a strong USP, one has to ensure that the pitch deck reflects the same.
Against the current background of economic uncertainty, starting with extremely high valuations can irk the investors. Instead, setting realistic, achievable valuations to not only gain their trust, but also mitigate the dilution risk. Maintaining transparency is the key to draw investors, especially during crises. It might be difficult for one to get funds for their start up. But, an extra effort would definitely not go in vain!
