Recommendations and action plan amid COVID-19 for startup founders

Photo by Jessica Lewis on Unsplash

These are times of uncertainty, and we know you are likely facing a combination of financial and emotional distress as well as a strain on business continuity.

There are a lot of perspectives being shared across the VC and tech community regarding the next steps to take amid this global pandemic. We would like to share the market’s current outlook regarding the COVID-19 outbreak, as well as some recommendations on how to navigate it. The world is entering a period of strong financial volatility which is likely to have a drastic effect in the economy. Given the current situation, the market believes we may expect the following outcomes in the coming months:

The current crisis shows an unprecedented Black Swan scenario. With these challenges in mind and the global pandemic evolving day by day, we believe it is in the best interest of every agent in the ecosystem to take immediate action and set up a contingency plan in order to mitigate the repercussions that may result from this outbreak. We highly recommend getting your full team aligned with the severity of the situation and with the main priorities during these times, namely:

Most importantly, seek support and resources from all stakeholders. From our end, we’ll work closely with each of our portfolio companies to build the strategies for cutting cash burn and ensuring runway extension as soon as possible. We have no doubt we will come out of this situation stronger. Meanwhile, keep the following in mind:

We are aware these are difficult times for everyone but we expect Venture Capital to rise from this crisis.

Written by:

Hector Shibata. Director of Investments & Portfolio at ACV a global Corporate Venture Capital (CVC) fund and Adjunct Professor for Entrepreneurial Finance.

Gonzalo Soriano. Investment analyst at ACV.

ACV is an international Corporate Venture Capital (CVC) fund investing globally in Startups & VC funds.

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ACV is an international Corporate Venture Capital (CVC) fund investing globally in Startups & VC funds.