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    April 3, 2020

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    tuan
    The document summarizes a survey conducted by NFX, a venture capital firm, on founder and VC sentiment during the COVID-19 pandemic. The survey included responses from 286 founders and 114 VCs. It found that most founders expect the economic recovery to take over a year, while VCs are slightly more optimistic. Many founders have implemented hiring freezes and layoffs, while most VCs say their investment strategy has not changed. Historical data from 2008 shows funding amounts dropped by 36% in 2009 before recovering in 2010-2011, suggesting the current downturn may last around two years.

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    April 3, 2020

    Uploaded by

    tuan
    21 views43 pages
    The document summarizes a survey conducted by NFX, a venture capital firm, on founder and VC sentiment during the COVID-19 pandemic. The survey included responses from 286 founders and 114 VCs. It found that most founders expect the economic recovery to take over a year, while VCs are slightly more optimistic. Many founders have implemented hiring freezes and layoffs, while most VCs say their investment strategy has not changed. Historical data from 2008 shows funding amounts dropped by 36% in 2009 before recovering in 2010-2011, suggesting the current downturn may last around two years.

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    nfxsvcfoundersentimentsurveyfinal-200403072208

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    The document summarizes a survey conducted by NFX, a venture capital firm, on founder and VC sentiment during the COVID-19 pandemic. The survey included responses from 286 founders and 114 VCs. It found that most founders expect the economic recovery to take over a year, while VCs are slightly more optimistic. Many founders have implemented hiring freezes and layoffs, while most VCs say their investment strategy has not changed. Historical data from 2008 shows funding amounts dropped by 36% in 2009 before recovering in 2010-2011, suggesting the current downturn may last around two years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    21 views43 pages

    April 3, 2020

    Uploaded by

    tuan
    The document summarizes a survey conducted by NFX, a venture capital firm, on founder and VC sentiment during the COVID-19 pandemic. The survey included responses from 286 founders and 114 VCs. It found that most founders expect the economic recovery to take over a year, while VCs are slightly more optimistic. Many founders have implemented hiring freezes and layoffs, while most VCs say their investment strategy has not changed. Historical data from 2008 shows funding amounts dropped by 36% in 2009 before recovering in 2010-2011, suggesting the current downturn may last around two years.

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    April 3, 2020

    About

    NFX is an early-stage venture firm based in San Francisco that


    is transforming how true innovators are funded. As founders
    ourselves, we built 10 network effect companies with more
    than $10 billion in exits across multiple industries and
    geographies.

    We believe that creating something of true significance starts


    with seeing what others do not.

    www.nfx.com @nfx
    Roadmap
    Part I - About the Survey

    Part II - Founder Survey Data

    Founder Sentiment | Company Changes | Fundraising

    Part III - VC Survey Data

    VC Sentiment | Strategic Changes | Startup Valuations

    Part IV - Historical Data, in partnership with Crunchbase

    ‘08 Downturn Recovery Timeline


    Part I
    About the Survey
    The VC & Founder Sentiment Survey is an
    ongoing initiative to monitor sentiment data and
    help shed light on how early stage Investors and
    Founders are reacting to the COVID-19 crisis.

    The goal is simply to provide a reference point to


    the community in the midst of one of the most
    unpredictable climates we will ever face.

    5
    286 Seed-Stage & Series A Founders &
    114 VCs provided their sentiment on
    important questions, such as:
    ● How long do Founders think it will be before the economy
    recovers? What about VCs?
    ● Are VCs really investing at the same pace? Has their investment
    strategy changed?
    ● Are Founders changing their fundraising plans? What do VCs
    recommend they do?
    ● What percentage of Founders have made layoffs?
    ● What is the impact on hiring? How many have implemented
    freezes?
    ● What are other Founders doing to cut expenses?
    ● What are the biggest concerns of the Founder community? And
    the VC community?

    6
    Part II - Founder Survey Data
    Founder Sentiment | Company Changes | Fundraising
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    Part II - Founder Survey Data
    Founder Sentiment | Company Changes | Fundraising
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    Part II - Founder Survey Data
    Founder Sentiment | Company Changes | Fundraising
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    Part III - VC Survey Data
    VC Sentiment | Strategic Changes | Startup Valuations
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    Part III - VC Survey Data
    VC Sentiment | Strategic Changes | Startup Valuations
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    Part III - VC Survey Data
    VC Sentiment | Strategic Changes | Startup Valuations
    33
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    Part IV - Historical Data
    ‘08 Downturn Recovery Timeline
    2008 Downturn Recovery Timeline
    We partnered with Crunchbase to review funding patterns from
    seed to Series C through the last downturn to understand the
    impact of the 2008 financial crisis, and what we can learn for
    today. Startups are being guided by investors to plan for a two
    year runway to be able to survive this downturn.

    From Crunchbase data, we observe a funding reset that started in


    the fourth quarter of 2008. 2009 was the low point down by 36
    percent year over year for seed through Series C funding amounts.
    2010 grew year over year by 45 percent. It took two years for
    funding amounts to exceed 2007 and 2008 invested amounts.

    38
    39
    Fundraising Observations from the 2008 Downturn
    Funding counts for Series A through C cut back by 27 percent in
    2009.

    Counts grew in 2010 and recovered in 2011 above 2008 funding


    counts. It is interesting to note that seed counts — not shown in the
    next slide — grew through this timeframe, as a newer institutional
    funding stage.

    40
    41
    About

    NFX is an early-stage venture firm based in San Francisco that


    is transforming how true innovators are funded. As founders
    ourselves, we built 10 network effect companies with more
    than $10 billion in exits across multiple industries and
    geographies.

    We believe that creating something of true significance starts


    with seeing what others do not.

    www.nfx.com @nfx
    April 3, 2020

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