Early Stage VC Investing post-COVID 19
SUMMARY:
– The economic downturn will create new opportunities for value creation by privately held companies, both by existing companies as well as by newly founded companies.
– Seed-stage opportunities will require even less capital to get started but significant support to grow long-term, both in follow-on capital as well as hands-on mentorship and guidance.
– Due to the longer-term horizon for exit, the timing for investing at the beginning of a new economic cycle positions these companies to further capitalize on the anticipated upswing of the markets.
– Substantive and lasting value creation through innovation of “deep-tech” vs other innovative “business” opportunities provides the potential for greater returns even in mediocre outcomes.
– Israeli innovation continues to flourish with over 1,000 new companies formed each year and an estimated 6,000 startup companies based in Israel alone.
– Bottom line: Seed stage VC should be considered as an attractive long-term investment strategy, especially when focused on deep-tech value creation led by Israeli innovators.
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