We are living in a very special time. The Corona virus has put everything that we call normal to a halt. Minc Capital Day, for example, is usually a great opportunity to meet and talk, today we have to go virtual.
The increased uncertainty has put a higher price on risk. Valuations generally have decreased to reflect that. For our startups, it means that they must ensure that they can raise enough money to take them to better times and potentially focus more on monetization earlier than initially planned. Some investors tend to focus more on their current portfolio to secure what they have. But there are quite many investors seeing even more opportunities to invest. Based on Connect’ s nation-wide survey about angel investment during the Corona crisis, more than 24 % of the investors said that they are prepared to keep on investing just as before and 62 % that they will invest but more cautiously. Only 11 % said that the stop investment for now. There is still quite a lot of capital on the market, still looking for better ROI than an interest rate of almost zero.
Increased efforts for public venture capital to leverage private capital will have an important impact to secure financing and make it more attractive and less risky for the private capital to invest. The upcoming share-issue in Fast Track Capital II is one example.
Crisis hurt but always creates new opportunities. We know that the world after Corona will be quite a different world. We also know that startups are here to take advantage of these opportunities to solve new problems and create new businesses.
What do you think will be more and less important in the post-corona world? How could some of the startups presenting at Minc Capital seize these opportunities?
Looking forward to an interesting discussion when we e-meet May 8!
Jeanette Andersson, CEO at Minc & Angel investor
Are you an early-stage or angel investor, do not forget to sign up by getting in contact with our colleague Dzenis at email@example.com
Startuphuset Minc i Malmö hjälper entreprenörer att bygga snabbväxande, internationella bolag. Minc blev nyligen framröstat som Sveriges bästa coworking space och rymmer i dagsläget Minc Incubator, den prisbelönade acceleratorn Fast Track Malmö, samt Startup Labs, en förinkubator där alla med en innovativ och skalbar affärsidé kan jobba gratis i upp till sex månader. Huset rymmer också Scaleup Workspace, kontorsplatser för växande startups, och Minc Lounge, ett kombinerat café och workspace.