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Who is still investing during the crisis?

Startup Investment During the Pandemic

Updated: March 15, 2021

The ongoing COVID-19 crisis has been a shock for our economy. Startups have been hit particularly hard by market turbulences and ongoing governmental restrictions. In many countries, government rescue schemes and packages have completely ignored startups.

But enough with the bad news. Contrary to what you might expect, the pandemic has not defeated dealflow! According to Atomico’s highly respected State of European Tech report for 2020, published in December, venture capital has continued to pour into the region.

  • Seed rounds are growing in size with an increased number of $100m+ deals, and the continent was on track for another record year of investment at over $41bn.
  • In March 2021, Hopin (which has seen huge demand for its software during the COVID-19 pandemic) has officially become the fastest-growing European startup ever, in terms of the time it has taken to reach a $5bn valuation.

The investment picture also looks good in North America, despite a politically, socially and economically turbulent year in the United States.
In every crisis lies opportunity – just ask Zoom! – and investors know this very well.
So there’s still every reason to be positive as a startup founder. But just because there’s money out there doesn’t mean raising funds just got easy!

How to approach investors in a time of crisis

Although the broader investment landscape remains better than many had hoped, it’s nonetheless true that investors are being more cautious than usual.
Some investors – business angels in particular – are focused on keeping their existing commitments afloat. All they’re doing is looking after their portfolio companies. And many venture funds have reacted the same way.
But as we’ve seen, plenty are still open for business. One thing to be aware of is that some of them might look for ‘bargain deals’ during the crisis.

STAY CALM

It’s important to stay calm in all your decision-making. Even if you desperately need funding, don’t just contact hundreds of funds. Remain rational. Make sure you target proper introductions to the investors who make the most sense for your business. Read investment criteria carefully before you reach out to investors.

Pitching online is also quite different from pitching in person – we recommend watching this free tutorial video to improve your skills.

EXTEND YOUR RUNWAY

Also, remember that this is not the time to be overly aggressive. This is a serious crisis and you should hit the brakes if you face uncertainty. Cut your burn rate, extend your runway. Down-rounds might be inevitable and the mid-/long-term reality of this crisis could be a long fundraising winter. Keep an eye on the valuation impact of your decision, with tools like DealMatrix.

BE PREPARED

Come up with a survival strategy and be ready to explain it to investors – as well as answer their challenge.

We highly recommend applying to the European Super Angels Club – Europe’s leading investors’ network – if your company is within the investment scope of the club. Venionaire Capital’s analyst and transaction team support the club with startup selection – in partnership with KPMG Austria. Members range from family firms and high-net-worth private individuals to corporate venture capital funds. The network includes thousands of potential investors who are open to investing during the pandemic.

If you need any assistance – don’t hesitate to reach out to us. We support startups in fundraising on a daily basis. Who knows, maybe we have a fit and we can leverage your efforts to raise a successful round.

About the author: Berthold Baurek-Karlic is the Founder and CEO of Venionaire Capital, with many years of experience as a serial entrepreneur, corporate finance expert, and early-stage investor. He supports the startup ecosystem in various roles such as President of the European Super Angels Club, Board of Austrian Private Equity and Venture Capital Association, and General Secretary of Business Angel Institute.

100 QUESTIONS FOR CEOS TO MASTER COVID-19 CRISIS

We have collected 100 thoughts, resources and questions from CEOs, in four core fields of attention, for you. Reflect for yourself and see, if there is a better chance to adapt your business. Try to consider this crisis as a unique opportunity to revisit and redefine processes and ways of doing business. And, if there are synergies to leverage together we are eager to hear from you!

7 Hacks to Master Remote Working

How to Master Remote Working working?

The recent Coronavirus crisis forced many of us into unexplored territory – everybody became a remote worker overnight. Considering our place of work is an essential part of our corporate DNA, the requirements of different generations, laws and regulations – mastering remote working is a challenge for entrepreneurs in any industry. It is a balancing act between legality, sanity, freedom, and efficiency in the new working conditions. Some of our clients adjust better, others move projects to Q3 2020 or cancel them completely. In our case that will not be necessary; we will offer the European Super Angels Club events, as well as Business Angel Institute trainings an option to be held online – we have all the necessary tools in place and have already done so in the past.

It looks highly likely that we will come out of this crisis with a new working culture. Sales estimates of video-calling and integrated communications solutions, like Grape and Phone-Automation systems, like Yodel.io, are going through the roof. Even Digital Team Österreich (an initiative from the Digital Ministry in Austria) is helping SME’s to find attractive solutions and special offers for any company in need of such services right now.

Not everyone can adapt to the new working environment equally. For most people, remote work is still a relative novelty. Even though laptops, cloud solutions and video calls are often supplementary to traditional office work, things become substantially more difficult once the entire team goes remote. It feels a little odd and you have to adapt and find ways to keep up your company culture – which can be tricky. There is certainly a lot we can learn from startups when it comes to remote work. Most millennials and startup founders practically grew up in remote teams at schools and universities. Global startups commonly have distributed teams, and some even work as digital nomads (while living on the beach or traveling the world). Some of our portfolio startups (in particular Grape, Butleroy and YodelTalk)have shared their learnings from previous years in blog articles (eg. Remote Work Checklist Guide, The World is Your Office), which we highly recommend reading).

We have summarized our personal experience, as well as learnings and insights of our startups for you in this article and hope sharing these tips for working remote from home will help you be more efficient in the coming weeks and maybe even beyond.

 

1. Be present and communicative with colleagues and clients

In order to be present and available for your team while working remotely, we recommend using a high-quality communication software. At Venionaire, we opened all our employees an account in an advanced unified communication platform named GRAPE.io. We also invite external project partners and clients to the same platform, albeit with restricted access.

We used to use WhatsApp groups for informal communication within our team; however, with everyone now working 100% remotely, we needed a much stronger solution, where we would not lose track of projects and developments. We needed to get a solution, which allows us to invite clients into private rooms and enables video chats, sharing of documents, and reduces the number of tabs open in our browsers. Switching between 5 to 10 solutions in parallel can drive you crazy really fast.

 

2. Set remote working guidelines

In our case, we have set very basic standards of communications – we say “hi” when we check in in the morning, we say our goodbyes before we go offline. Lunch and coffee breaks are still as important as before – therefore we encourage our team to chat during breaks and keep up social ties within the team. We use a separate chatroom for off-topic conversations and private video chats. We encourage our employees to use this for the sake of social relations and exchange while drinking a coffee.

 

3. Timeboxing

Due to higher amounts of calls, email and chat-messaging through all kinds of channels, we encourage to plan in some “buffer-time” between meetings and in addition, introduced the concept of Timeboxing. We block times for internal meetings, for emails, for calls (internally and with clients) – this way our days and the workweek have a clear structure.This concept makes it easier for team-members and partners to engage with you, when you are ready for them.

 

My workweek is structured very simple and looks like this for myself:

  • Meeting Monday – Internal Meetings (only), here tasks and targets for all team members are set
  • Project Tuesday – Project Teams work on their milestones
  • Relationship Wednesday – Schedule (Video) Calls with clients
  • Silent Thursday – Take time to get your stuff done, with as little disturbances as possible
  • Client Friday – (Video) Calls with existing clients, partners, and all other external stakeholders

 

4. Set your top 3 priorities a day 

As we cannot simply walk by our colleagues and get a sense for their current stress level and resource allocation, things need to be done differently. Every team member needs to be transparent about their work schedule, tasks and targets, and share it pro-actively amongst colleagues. For the sake of simplicity, we ask for 3 main priorities for the day to be shared. A personal checklist will naturally have more sub-tasks, however 3 topics of the day are enough to give an idea of the workload and rough schedule.

If a job or task is done – we pro-actively share it in our team chat and tag a manager to make sure this is noticed.

 

5. Set limits for how much you work 

Unless you’re working on a deadline, limit your workday. Schedule breaks at least every two hours and save time for sports. On a normal workday you would sit in the car or public-transport for 30minutes or maybe even more – use this time for physical activity. You will be most productive, if you set yourself goals and a timeline to deliver them. Create a balance so that you can enjoy your surroundings, take time for yourself and your family, which requires your support in troubling times such as these.

 

6. Be patient with your colleagues – share tips for working remote

Try to remember that nobody chose to be in the situation we find ourselves these days. Some adapt quicker, some slower – some struggle, some handle it more easily. This is a challenge, but at the same time an opportunity. It is important to share experiences and to listen to your colleagues when they share their personal situation and difficulties – we should all learn from each other and support each other every day. It’s up to you to ensure everyone else feels comfortable and welcome!

 

7. Congratulate yourself (even if it is weird)

Praise yourself when you get something done. Working remotely is a challenge. It may look easy – looking at digital nomads and startups from the outside. Inquire deeper, however, and those who are honest will confess that they smile after every hurdle they jump over – keep on celebrating your wins and involve your team in it (even if it´s only on video) to really master remote working!

 

About the author: Berthold Baurek-Karlic is Founder and CEO of Venionaire Capital, with many years of experience as a serial entrepreneur, corporate finance expert and early stage investor. He supports the startup ecosystem in various roles such as President of the European Super Angels Club, Board of Austrian Private Equity and Venture Capital Association and General Secretary of Business Angel Institute.

 

 

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Venionaire Capital exclusively invests through the European Super Angels Club, for more information and application please go to the website. We do not accept direct investment proposals via this website.