In a survey of investors conducted by Deutsche Börse, more than three-quarters of respondents expressed concern about the companies in their investment portfolios. The investors have a specific tip for startups seeking capital.
One Opinion poll of the Deutsche Börse Venture Network According to the survey, 78 percent of investors surveyed see negative impacts on their portfolio companies due to the current situation. Around 80 investors were surveyed between April 9 and 15.
Pandemic affects investors not only in terms of current portfolio
The number of new startup financings could also decrease significantly. Investors therefore recommend that young companies that cannot postpone new financing rounds emphasize the resilience of their business models, focusing on opportunities in the post-crisis period. Peter Fricke, Head of the Deutsche Börse Venture Network, says:
"A strong ecosystem for growth financing is more important than ever. The perspectives of founders have already been extensively surveyed. But in order to assess the impact on the entire ecosystem, the assessment of venture capitalists is also essential."
Investors say the pandemic is affecting more than just their current portfolios and new investment decisions. More than half of startup investors expect a decline in engagement from some of their traditional investors, the so-called limited partners. Startups should therefore plan significantly more time for raising capital.
