22 May 2020

Investment, where we are and what we’re hearing

Christopher Lowe, Founder and CEO of NOTWICS has been speaking to his community of startups and investors to gauge the current investor climate, working practices, valuation and the wider impact on the industry as we continue in COVID-19 lockdown.

In this month’s COVID Diary (may update), notwics have sampled the views of nearly 100, mainly UK based VC’s and Angels, to try and garner consensus on what their current thinking is on the crisis and how they are currently working with and investing in founders in the seed/early stage and Series A categories.

The main takeaways of the report are below:

# Virtual technologies move towards becoming the norm for all investors, mainly for portfolio management however as most VC’s are still reluctant to close a deal online and still want to meet in the flesh.

# The initial fears for valuations to drop by 50% on average, have not materialised. Currently, it’s more like a 30% drop.

# On their own industry, the majority of VCs expect it to shrink but optimistically see this as them getting leaner/better as a result.

# Fears remain on the UK Angel community – where COVID-19 has temporarily destroyed short term interest in Seed and Early Stage startups.

⬇️ You can read the complete report on the NOTWICS newsletter ⬇️

NOTWICS newsletter