VC in a Post-Covid Economy: How We Can Drive American Recovery

In a post-pandemic world, the value of digital infrastructure lies in the connectivity and efficiency of building businesses that not only produce economic returns but also improve quality of life in larger segments of our society.

By Christopher Canzano

The Dusk Before the Dawn

At the start of the pandemic, businesses shuttered down and the world waited with bated breath as all our futures hung on a precipice. Now, nearly 18 months later, businesses have reopened and with over 50% of the US population vaccinated, the American economy has demonstrated an unexpected rebound that has defied projections of productivity and growth. In fact, the second and third quarters of 2020 saw the fastest rate of productivity since 1965. This steep increase is due, in large part, to ramped up production to catch up after the shut down of the first quarter. Arguably, COVID-19 has served as a catalyst to accelerate American technology within the digital infrastructures of remote working, healthcare, retail, and manufacturing. Although some areas, like healthcare, have been historically reluctant and slow to change, COVID-19 spurred a reaction within our American spirit that accelerated change and surged productivity.

Across the board, formerly rigid bureaucracies in business have seemingly relaxed, empowering small businesses that would have, otherwise, perished only in thought. The pandemic has forced many in business to view human and financial resources through a different lens and to question the effectiveness of how things and people were used in the past. Digital acceleration has optimized technology in day to day operations and fortified data security. By bolstering supply-chain redundancies, businesses aim to avoid the bare and empty shelves of supermarkets and the long lines at Costco for toilet paper. COVID-19 has taught all Americans a lesson in supply and demand.

So what is the VC role in a post COVID economy that is proving its resilience in the devastating wake of 680,000 deaths in the US alone and the loss of jobs for over 114 millions Americans in 2020? From the unrelenting ravages of climate change to the BLM movement sparked by American George Floyd, to the storming of the United States Capital on January 6th, much has happened in the past 18 months of our pandemic existence. VC’s increasing roles in environmental, social, and governance (ESG) markets will forever alter the trajectory of our country.

Much like computer malware, COVID-19 has revealed our weaknesses and vulnerabilities. But, in the same stroke, it has also inspired innovation and creativity. Investors need to look not only at other companies or platforms, they need to seek economic returns in other places. To look beyond Silicon Valley and the Northwest or Mid-Atlantic opens up a vast territory of prospects and business opportunities yet untapped. In a post-pandemic world, the value of digital infrastructure lies in the connectivity and efficiency of building businesses that not only produce economic returns but also improve quality of life in larger segments of our society.

The American dream relies on the notion of equal opportunity for every individual, yet the reality is that not all Americans have the same opportunities when seeking to start a business. This pandemic has ushered in a palpable sense of unity but has also exposed the health and socioeconomic inequities that shatters the American dream and limits our economy. This is the time for investors to look beyond race and gender. This is the time to lose the preconceived and traditional ideas of what an attractive investment would look like. Ingenuity, diversity, perspective, and grit create the perfect cocktail for a post COVID-19 world.