New Report: Venture Capital & COVID-19 Trend Outlook

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New Report Venture Capital COVID-19 Trend
Outlook
We have published a new white paper examining the
initial impacts of the COVID-19 pandemic crisis
on the venture capital industry. V enture
Capital COVID-19 The State of Fundraising,
Historical D ownturn Insights Startup Trends
analyzes the effects on venture capital of the
first four months of the pandemic crisis and the
outlook for the rest of 2020 and beyond. The
paper draws on Phoenix Americans observations as
a fund administration provider, conversations
with the sponsors of its many client funds as
well as interactions with partners,
intermediaries and other participants in the
industry. The companys twenty-plus years as a
fund sponsor as well as forty-plus years as a
provider of fund administration services
provides a unique perspective on current events
and their effects on investment funds.
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• Top takeaways from the report include an analysis
  of the effects of previous economic downturns on
  venture capital, the current state of VC
  fundraising, the priorities for VCs during the
  crisis and key investment opportunities. The
  report considers several factors of interest.
• Pre-pandemic flux Conditions were changing for
  venture capital going into the pandemic crisis.
  Concern for the late stage economic cycle had
  deal and exit flow starting to stall in 2019.
  There would be record high dry powder going into
  2020.
• Downturn lookback Historically, economic
  downturns have seen substantial contractions in
  aggregate deal volume, capital invested and deal
  size. Early-stage companies are hit especially
  hard. But there is a silver lining.
• Focus on the portfolio VCs are concentrating on
  their existing portfolio companies, helping to
  chart a path to survival and a favorable
  post-pandemic exit, cutting costs and
  streamlining operations.
• Investment opportunities are emerging in remote
  work and IT solutions including healthtech and
  fintech with workers largely still at home and
  health care top-of-mind for many Americans.
• Term sheets are changing to reflect greater
  investor protections in this time of increased
  risk and due diligence processes are reflecting
  the same concerns.
• There is no lack of capital with historic levels
  of dry powder and rebounded inflows but
  investors are looking for experienced managers
  who have weathered previous economic storms.
• With a perspective coming from the companys
  experience with alternative investment funds,
  Phoenix American emphasizes the need for fund
  sponsors to be able to respond operationally to
  major economic

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disruptions with innovative solutions to fund
raising, cash flow and deal acquisition that are
supported by a versatile and robust back office
infrastructure a distinct advantage enjoyed by
Phoenix American client funds in the current
economic environment. Read more on h
ttps//www.phxa.com/news/new-report-venture-capita
l-covid-19-trend-o u tlook/ Contact
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