COVID19 Founder and VC Sentiment

After economic upsets like the one caused by COVID19, often one looks to Startups as a way to power forward with new ideas and growth. NFX (a VC firm) is conducting regular surveys with startup founders and VCs. Their second survey provides updated sentiment. See https://www.nfx.com/post/vc-founder-sentiment-survey-part-2/ for the details

A few things stand out

• Funding climate will be tight and that puts pressure on valuations
• While remote work is common, there is slow embrace from VCs for funding remote teams
• Some delays in hiring and cost pressure on new hires
• A good chunk of existing companies are expected to thrive and grow
• Some companies will face cash crunch.

It is still super important to find problems that are hard to solve and worthy of solving. Plus one has to be frugal in managing cash.