Hi and welcome back to our regular early morning look at private companies, public markets and the gray area in between.
Today we need to speak about what we’re hearing from the private markets and the public markets, and how various their messages seem to be.
The public markets through yesterday were on the bounce, increasing greatly from recent lows, driven by unfavorable news worrying COVID-19 and its occurring financial damage. As TechCrunch kept in mind the other day, major American indices had actually seen their value sharply recuperate from lows recorded earlier in the year. This was odd, as the news from COVID-19 is far from good– America is still the nation with the highest rate of new, confirmed infections and associated deaths by some margin— and the economic damage originating from the nation’s belated efforts to stem the pandemic in the house accumulate. You can quickly read optimism in the stock market: that the COVID-19 infection footprint
at home isn’t as bad as some designs showed, that social distancing is working, which the economy will quickly rebound from this bother. Ask around the private markets, however, and you’ll hear a very various narrative. Yesterday while kicking over the business-focused modern-day software application market(enterprise SaaS, if
you choose )with Shasta Ventures’Jason Pressman, we discussed the state of affairs for personal business that he’s seeing from his perch inside the startup device. Taking his notes into account , in addition to those of other investors that we have actually spoken with recently, it’s difficult to understand the level of optimism that public markets are signifying. Not that Pressman is a pessimist, it would be hard to be a net-gloomy venture capitalist on the whole, provided the danger profile of the financial investments they make. Some VCs who have invested through previous downturns are comfy being honest about what they are seeing from personal business, those inside their portfolios and out. This morning let’s check out the public-private optimism gap for the second time. The last time
we undertook this particular theme, public investors were being pessimists and private investors appeared unseasonably bullish. It’s unlikely that there is space for both views to be right. Smiles, frowns Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.