Open for Business ?

What “Open for business” means for us at CapHorn… Well, we’re all definitely heads down, working 12+ hour days with our portfolio companies to help them through the crisis. So, we’re definitely open, but it’s not — and cannot be — business as usual. Let’s face it: when you’re cruising at 100mph and hitting severe fog or a sudden snow storm, you can only slow down to assess the situation.

We are currently processing an investment (stay tuned!) — and have not changed a single term to our LOI despite the crisis. That’s us, we stay true to our culture and values. Likewise, we are still meeting new entrepreneurs to get to know them and their business. Yet, let’s face it: it is very unlikely we’ll be issuing a new term sheet to a company we don’t already know well within the next few weeks, if not couple of months. And partnering for years without having met face to face with us and our network is not the wisest of all decisions, for all parties.

We want to be honest with prospective entrepreneurs. It’s the sad short term reality, but we certainly hope to be able to go back to doing what we love at a normal pace later this year. We owe it to entrepreneurs to be clear and avoid wasting their precious time, especially if they’re hurried for cash. We also owe it to our LPs : investing their money in a completely blurry market would be irresponsible. It would be no better than pressing the gas pedal blindfolded, when you hit the fog or snow storm. It’s not about risk aversion, it’s about plain sanity!