As the pandemic outbreak plays out, it imposes a heavy toll on the economy, leaving no sector unscathed. Entrepreneurs and managers must reassess their work plans, goals, and devise corrective measures to avoid financial distress.
Changing fortunes are not a new phenomenon, and adverse effects can run business down. The lending community, as well as regulators, has developed analyses to assess the chance for default for borrowing companies.
Are Israeli Startups Still Attractive to Foreign VCs?
Three senior representatives of leading foreign VCs, Ibex Investments, Flint Capital and Battery Ventures talk about investments in Israel, post-pandemic. Is “business as usual” or has there been a change in how foreign VCs view Israeli start-ups
Repricing of Employee’s Options as a Tool for Dealing with the COVID-19 Crisis
Repricing employee’s options is a great tool that enables the employer to benefit its employees, at minimal cost. These times are stressful and uncertain to many, especially for employees – some had to take an unpaid leave or deal with a salary cut back. Re-pricing employee’s options allows the employer to fix the value decrease of the options and consequently strengthen the employees’ identity with the company and its goals and retain them for the long run.
Global COVID-19 Resources for Entrepreneurship Ecosystems
GEN is crowdsourcing best practices, resources, and opportunities to support entrepreneurs, organizations (ESOs), policymakers, and investors impacted by COVID-19 around the world. The resources in the knowledge base below are not owned by GEN. More information and proper credit can be found in the descriptions, links, and/or attachments.
For startups, camels are a more appropriate mascot. Camels adapt to multiple climates, survive without food or water for months, and when the time is right, can sprint rapidly for sustained periods of time. Unlike unicorns, camels are not imaginary creatures living in fictitious lands. They are real, resilient and can survive in the harshest places on Earth. While the metaphor may not be as flashy, these startup camels prioritize sustainability, and thus survival, from the get-go by balancing strong growth and cash flow.
Financial Distancing: How Venture Capital Follows the Economy Down and Curtails Innovation
Although late-stage venture capital (VC) activity did not change dramatically in the first two months after the COVID-19 pandemic reached the U.S., early-stage VC activity declined by 38%. The particular sensitivity of early-stage VC investment to market conditions—which we show to be common across recessions spanning four decades from 1976 to 2017—raises questions about the pro-cyclicality of VC and its implications for innovation, especially in light of the common narrative that VC is relatively insulated from public markets. We find that the implications for innovation are not benign: innovation conducted by VC-backed firms in recessions is less highly cited, less original, less general, and less closely related to fundamental science. These effects are more pronounced for startups financed by early-stage venture funds. Given the important role that VC plays in financing breakthrough innovations in the economy, our findings have implications for the broader discussion on the nature of innovation across business cycles.