The tech industry (and the world at large)is not experiencing momentary anxiety– the unpredictability we’re all managing is the new normal.
Abrupt shifts in behavior have made some startups targeting slow-moving, old-school industries more relevant than they could have envisioned, such as those in telehealth, distance learning and remote work. Many, nevertheless are seeing huge reductions in revenue, requiring them to cut costs and even lay off teams to slash burn rates. Other start-ups just won’t be here in three to 6 months.
Cowboy Ventures founder and managing partner Aileen Lee, who created the term “unicorn,”says tech companies going through circumstance preparation need to start believing long-term.”We have actually invested the last month situation preparation with our portfolio business, and in many cases, we’ll have conversations about what these scenarios can include,” said Lee. “And when we look at the preparing around those scenarios, they frequently do not feel conservative enough. Many business owners are optimists, and we are, too! However it appears more secure to have more conservative strategies [ and start expecting] that this is going to impact us for longer and be even worse than we expected.”
Lee and Cowboy Ventures partner Ted Wang signed up with TechCrunch on Tuesday for our first episode of Extra Crunch Live, a virtual speaker series for Extra Crunch members. In a live Q&A that consisted of concerns from myself and the Additional Crunch audience, Wang and Lee covered a vast array of subjects, including PPP loans, recommendations for business leaders around layoffs, the correct time to seek financing and the best companies from which to look for that funding, how to pitch throughout a slump and which sectors in particular Cowboy has an interest in financing right now.
You can check out the best insights from the call, or catch up on the complete discussion through the YouTube embed listed below.
We have a number of exceptional guests, consisting of Charles Hudson, Mitch and Freada Kapor, Mark Cuban, Roelof Botha, Hunter Walk and Kirsten Green, joining us on Bonus Crunch Live over the next couple of weeks. Register for Extra Crunch to get access to all of them.
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.