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How Does The Remote Environment Work For Venture Capitalists?

VCS ARE EMBRACING REMOTE INVESTING




"This new distant environment has demanded adjustments in how fund managers handle their overall business."


Massive remote work got underway during isolation to stop the spread of the coronavirus. It has now become a popular trend among businesses and investors, with many VCs stating that they are considering not bringing all — or any — of their staff back to work. It's no surprise that many VC founders want to work from home. However, investors are not that excited about the concept.


"According to a recent poll, 60% of VCs claimed they were less willing to invest in firms where the majority or all of the staff worked remotely."


The survey received answers from 451 entrepreneurs and 141 venture capitalists throughout the United States. It is the second poll conducted by the venture company in the previous few months in an effort to collect data on the developing mood of founders and VCs during the Covid-19 period.

The survey's most eye-catching finding is that startup values are projected to fall much more than previously predicted owing to Covid-19—by up to 40%.


VCS ARE EMBRACING REMOTE INVESTING

Remote working isn't going to vanish, and neither are investors. In fact, in an all-online atmosphere, communicating with VCs could be simpler than ever.

Some venture capitalists are anxious to engage with entrepreneurs remotely since it's far more difficult to get to know someone you're investing in when you can't actually meet. Despite the Covid-19 financial crisis, 25% of founders reported no change in revenue, while 30% reported an increase.

Nonetheless, investors and entrepreneurs have had to use a number of strategies while meeting remotely. According to a recent Forbes report, investors advised firms on how to handle the new structure. Make time on calls for casual talk rather than simply business talk. Video calls are better than phone calls when you want to get to know your investors better.


FACING THE CHALLENGES, SEIZING THE OPPORTUNITIES

"The shift to completely remote investing might become the new normal."

The next months will be challenging and unclear as firms and the venture capital community adapt to the new environment. However, the epidemic is about to end, and VC-backed companies must understand how to survive the present scenario and prepare for the eventual upturn. Furthermore, the COVID-19 pandemic may cause long-term changes in societies, consumer behaviours, or demands, which may offer valuable economic prospects for start-ups that can anticipate these changes.


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