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Thanks to everyone who joined our discussion last Thursday!

If you missed the event - no worries.
Here are some insights from last Thursday night.
The pandemic has made fundraising more challenging for startups.

Now VC investors are quite cautious.

"They expect from founders not only strong ideas and teams but also a clear vision of how they are planning to survive the crisis and pivot."

KEY INSIGHTS:

1. The pandemic has split startups into three categories

  • Directly impacted by COVID-19 (travel, hospitality, food companies).
  • Indirectly impacted by COVID-19, with modest slowdown (SaaS startups).
  • Positively impacted by COVID-19, with drastic revenue growth (health tech, eCommerce, online education).
2. To get investment each of these groups should apply a different strategy
  • The 1st category founders should acknowledge the challenging situation to control their narrative and articulate how they are going to pivot by changing, for example, their business model or adjusting to new market demand.
  • The 2nd category founders should demonstrate some discipline and present their plan for the next 24 months instead of the usual 18-month period.
  • The 3rd bucket founders should convince VCs that their business dynamic is sustainable or explain how they are planning to use the momentum to achieve other goals.
3. Founders should balance between defense and offense
  • The startup teams that would like to pivot should balance between offense and defense not to miss great business opportunities that usually come up during any crisis. But at the same time, they need to avoid unnecessary risks to save capital.
4. Investors have become very risk-averse
  • The pandemic has made investors risk-averse, so they are looking for startups with high-quality teams and top-notch ideas.
  • It’s clear now that a traditional venture capital investment calendar doesn’t work this year. Although the business is reviving gradually, it’s still unclear what to expect in January.

WHAT'S YOUR THOUGHT?
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What's Next?
Join us on September 3 at 6:30 pm EST to get expert insights on how to improve your daily operations and increase business efficiency disrupted by the pandemic.
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This event is part of the LEL Connecting New Era series. 

About LEL Connecting

LEL Connecting is a community focusing on providing constructive value and knowledge to young professionals and startup fans interested in VC/tech fields and founders seeking resources and opportunities.

In 2020 - 2021, LEL Connecting will focus on Connecting New Era (post-COVID-19) and Connecting Diversity with a series of events (online & offline) to support founders and young startup professionals worldwide.

In Connecting New Era sessions, top industry professionals from the startup and VC world will share first-hand insights and expertise with founders, startup fans, and investors looking to pivot amid COVID-19.

Looking forward to e-meeting you soon!

Best Regards,

Lair East Labs team

 
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