Effects of COVID Pandemic on Startup Fundraising

Despite the fact that money is available, the situation remains difficult. Fundraising is more important than ever before, particularly for seed and early-stage businesses. COVID-19’s consequences will reverberate for years, making it critical for founders to stay adaptable. In reaction to pandemic-related closures and altering customer demands, more than half of business leaders have altered or plan to shift their operating models to be more online.

Subang Jaya – 07 February, 2022 – It’s no different from being impacted by the COVID-19 Pandemic and its consequences when it comes to startup financing. The economy has been thrown into disorder by Covid-19, and enterprises are not immune to the repercussions. Most investors have adjusted their portfolios to retain their present positions, while some have taken the other approach, diving headfirst into the pandemic’s uncharted territory. There are no hard and fast rules that govern investor behaviour, but there are several guiding principles that companies may use to keep or even expand funding during a downturn.

Since everything has gone online now, here are some tips on how to pitch virtually. First of all, make sure you’ve planned and rehearsed your speech. Recognize your current financial status. If you radiate confidence, your pitch will be more intriguing and remembered. If you’re presenting to a different VC, do some research on their focus, prior investments, and interests. At a minimum, two members of your team should take part. Decide who will be in charge of what. Startups should also send their deck in advance to avoid any technical issues that are potential to come. Be open and honest about what you know and don’t know. Explain the first and second-order effects of Coronavirus on your firm to show that you understand market dynamics. Give instances of key decisions you took to help your company adjust to the current climate. Allow the investor to decide the pace of the presentation while you’re giving it. Always follow up and make an effort to establish a long-term connection based on mutual trust. It might be as basic as crafting a captivating beginning to deliver value if at all feasible. Understanding the complexities of investor attitudes offers up a world of opportunities for businesses.

While there are resources available to assist prepare for a successful presentation in general, pitching for survival during a pandemic presents its own set of obstacles and issues that some entrepreneurs may not have considered. One of the advice given by Ben Lim, founder of NEXEA was to Build a relationship with angel investors and venture capitalists. There are a couple of options. After the initial meeting with the angel investor and VCs, provide regular updates. Be proactive and recognise that the connection between the company founder and the investor should be long-term. Second, please leave the video on during virtual calls, as face-to-face engagement is very vital. 

Despite the fact that money is available, the situation remains challenging. Fundraising is more important than ever before, particularly for seed and early-stage businesses. COVID-19’s consequences will reverberate for years, making it critical for founders to stay adaptable. Adaptable tactics will continue to be the most successful for startups.

To read more about these insights, visit us at Nexea Insights 

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About NEXEA

NEXEA is a Malaysian Venture Capital and Startup Accelerator firm that specializes in supporting and funding technology companies that have the potential to be the next technology giants. NEXEA also has services for investors and corporations that want to invest or work with future technology giants. 

NEXEA is known for its mentors who are successful ex-entrepreneurs, or C-levels who own or have sold (IPO, M&A) their businesses. The combination of experienced mentors, experts, and partners prove potent as the top companies out of 35+ startups invested by NEXEA have grown 3 to 16 times per year. NEXEA is based in Bandar Sunway, Selangor.

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