NFX issues update to its inaugural report on VC and Founder sentiments as a result of COVID-19
NFX is an early stage venture capital firm based in San Francisco. In early April, it released its inaugural report titled “The VC & Founder Sentiment Survey” (click here to see our teknovation.biz article). Now, NFX is back with an update on that report, and here’s a summary of those findings based on input from 451 seed stage and Series A Founders and 141 Venture Capitalists (VCs).
- VC and Founder predictions for U.S. economic recovery are getting worse, not better.
- Founders are less worried about what COVID-19 means for their specific start-ups than they were two months ago while 49.6 percent of VCs today are “Extremely Worried.”
- Sixty percent of tech start-up Founders give the federal government a failing Grade of D or F on its handling of the COVID-19 pandemic.
- Tech start-ups may have a competitive advantage in their speed to adapt to changing market conditions with 40 percent reporting no change in revenues and 20 percent reporting an increase.
- Start-up Founders are quickly looking to fundraise, at the same time that VCs are decreasing their rate of capital deployment into new investments.
- Finally, valuations continue to drop.
Click here to see a number of charts. You can also find a link to download a PDF version of the report.
