Covid-19 has brought uncertainty across the world and has disrupted our bearings. As we gathered with the team to think about handling of the crisis and how we should adapt, we analyzed examples of psychological forces that proved critical throughout turmoils and we found inspirations in Israeli experiences.

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Once a pasture land, Tel Aviv now blooms as an international business capital

1. Status quo bears the greatest risks

Many in Israel express a sense of anxiety about a looming catastrophe and the geopolitical situation of the country. For them, the future is not the continuation of the past and that surprises can come from every direction.

That mindset gives the strength to overcome a major feature of the human brain, that we despise risk and that the pain of losing is psychologically about twice as powerful as the pleasure of gaining, often leading to a preference for status quo. It helps conjuring a fallacy, “The illusion that we understand the past fosters overconfidence in our ability to predict the future”, which was exposed by Daniel Kahneman and Amos Tversky. …

Not all revenue is equal. Figuring out how strong yours is remains key for the future of your business, especially in a post-covid world and the likely crisis.

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Typical result for the “cigarette analysis”.

When facing troubles, most entrepreneurs (me included) have a tendency to apply a macro risk and global hypotheses to their business. For example, they will assume “overall revenues down 20% vs budgeted for next 6 months.” However, the latter does not make sense and ignores basic assumptions that could put your business at serious cash flow risk. Each client must be quickly analyzed.

At Newfund, we have developed just that: a practical tool to analyze the strength of revenues streams for any B2B startups. It takes 15 minutes and any early-stage company can (and should do it). You can find it HERE and you’ll find a tutorial on how to use the tool at the end of the article. …

Ever since Newfund Capital landed in the US in 2013 via a “flip” of one of its portfolio copmpanies, its american-ess has progressively increased : 1/3 of our investments are state-side, 15% of our LPs live in the US, and we have opened an office there. Combining our experiences as entrepreneurs in the US then as investors, here is a mini-guide to direct you in your thoughts of fundraising in the US.

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You are an international startup and you wish to raise with seed funds based in San Francisco? …


Augustin Sayer

Principal @ Newfund Mgmt |

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