[DECODE] How are funds responding to the coronavirus crisis?

by bold-lichterman

On the front line to help start-ups in this difficult period, investment funds are faced with an unprecedented situation that raises its share of questions and fears. To take the pulse of the players in the financing chain of the French digital ecosystem, Chausson Finance surveyed 70 Partners working in around fifty venture capital funds operating in France and managing funds. over 10 million euros. Thus, ISAI, Serena, Idinvest, Elaia, Daphni, Partech, Bpifrance, Iris Capital, Breega, Newfund and even Balderton Capital participated in this barometer highlighting their behavior in the face of the Covid-19 coronavirus epidemic.

In this study, it emerges that almost a quarter of funds no longer wish to receive files in the next 15 days. In fact, one in two funds prefers to focus on the most advanced deals and start-ups in their portfolio. The vast majority of funds believe that the current health and economic crisis will have lasting effects. Three quarters of them believe that the impact of the pandemic on their investment strategy is high or very high. However, 77% believe the situation will not disrupt their priorities for more than two months. Funds estimate that the crisis is likely to last nearly six more weeks on average. To help the start-ups in their portfolio weather this storm successfully, they recommend good cash management to them. As they say, “Cash is King” …

VC-19 barometer produced by Chausson Finance. Credit: Chausson Finance.

Read also: François Véron (Newfund): “We must not be afraid to consider the improbable in the face of the coronavirus”