VC investors in the U.S. appear to be taking a longer-term view of the pandemic’s impacts. While VC investors may have had to rethink their assumptions as to the timing of their portfolio companies to become profitable or to hold a successful IPO, they are continuing to support the ones they expect will be able to be successful after COVID-19 has run its course.
At the same time, the sudden impact of the pandemic has caused VC investors to further enhance their focus on the efficiency, effectiveness, and profitability of companies. Changes that startups are making to improve their operations and cash flow to better weather COVID-19 could have the added benefit of helping them reach profitability sooner—a win-win for both startups and their investors.
Necessity is the mother of invention and the next wave of great companies will likely come from this global pandemic. Venture investors have plenty of capital available but are faced with the choice of deploying it on existing investments to optimize return or choose to deploy on these newer companies.
Conor Moore, National Leader, KPMG Private Enterprise, KPMG LLP
About the Pulse Series
The Pulse Series of reports—Venture Pulse and the Pulse of Fintech—analyze the latest global and regional investment trends and insights. Included in the reports we provide perspectives and analyses on the lifecycle of venture capital investments as well as overall fintech investment across the Americas, Europe, and Asia. In each report, we share the latest valuations, financing, deal sizes, mergers & acquisitions, exits, corporate investment, and industry trends.
