Originating from China, the novel coronavirus has infected 415,114 people and resulted in 18,559 global deaths by late March 2020. The crisis is undoubtedly one of the largest pandemics the world has endured.
However, there are many positive changes it has brought to society. For example, despite the heavy costs associated with the outbreak, the crisis has encouraged the Chinese government to be more transparent and has demonstrated the value of freedom of speech to the rest of the public.
For Venture Capitalists, the crisis does not necessarily mean completely stopping investment activities or worrying about the survival of portfolio companies. It can also unfold new opportunities that might not have seemed that obvious before.
Overall, as many economists have stated, the crisis will not affect the macroeconomy in the long run, as seen from other disasters before. At a business level, the crisis may have already created some opportunities as people’s habits, needs, and preferences are temporarily being impacted and revised. These changes have encouraged people to try out new products and services and have enabled companies to grow their user base more rapidly and with lower CAC. In the VC world, this means there are companies out there that can become strong candidates for investments.
1. Coronavirus will not change the fundamentals
The crisis does not change three things: the demand, the supply, and the…
