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Laxman Pai, Opalesque Asia: The number of venture capital investments in US startups has dropped by -30% when compared to 2019, but the average value of investments has risen up by +33%, said a study.
The VC ecosystem was prepared for a crisis to come. The general game-changer was the lockdown, not the economic slowdown, said a report by Tooploox.
"The overall COVID-related crisis has hit the retail and entertainment sectors hard, among others, disrupting routines and imposing a lockdown. On the other hand, e-commerce and online services have witnessed an unseen boom, with the rapid development of digital skills among new demographics and sectors that were once slow-adopters," said the report.
For the agile and high-tech-oriented ecosystem of startups and VCs, this new reality was unexpected, yet far from paralyzing, it said.
Life sciences and pharmaceuticals are the only industries that have witnessed growth in the number of investments, the average value of investments, and the overall value of money raised.
July has seen a +98% increase YoY in the average value of money invested by VCs, while in January the number, value, and average value have dropped, showing the initial shock of the COVID pandemic.
The VCs shared valuable info describing the new reality and how startup founders can find their way through it, considering the changes in investments - with VCs investing less frequently, but with more cash per funding.
"One bit of evergreen advice ...................... To view our full article Click here
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