The Covid-19 pandemic has created a lot of turmoil for business. Also startups are facing serious issues. Market take up has slowed down and which further deteriorated their loss making phase. Furthermore it is assumed that the access to fresh capital is much harder in these times. Investors are focused on their portfolio companies and might even be moving away from the risky asset class that innovative startups are. Declining willingness to invest by private parties might be that public funding is taking a dominant position: the Corona Bridge Loan supporting viable startups in this crisis may detriment the need of funding provided by traditional parties such as angel investors, VCs, funds and Corporates. One can question if indeed the investment appetite of these parties declined.
MatchingWINGS has analyzed the number of investments in startups that are published on news sites, social media and in press releases. Since our MatchingWINGS Angel Network focus on seed capital, we are particularly interested in investments between 50k up to 2M euros. We have found that in the period 1st of January to 30th of June 2020, 91 deals fitting this investment size have been published. To our surprise we registered exactly the same number of deals for the first half year of 2019. So we conclude that during the corona crisis, the growth funding of startups is not – yet – affected by this crisis. Even though historic figures do not provide a guarantee for the future, one still can be hopeful for it!