Covid-19: VC funds see growth-stage startup funding to be worst-hit; tell entrepreneurs ‘cash is king’

  • The Coronavirus pandemic would also get startups, looking for capital, embroiled in the current arduous condition.
  • multiple venture capital investors Financial Express Online spoke to.
  • For startups looking at raising foreign capital, especially later-stage rounds, due diligence and all such legalities will face delays due to travel restrictions across borders, Mayank Khanduja, Principal, SAIF Partners told Financial Express Online.
  • That’s because they run on heavy burns which would increase because of sales going down, another investor Ishpreet Singh Gandhi, Founder & Managing Partner, Stride Ventures told Financial Express Online.
  • Another reason for the delay in funding is likely to geographical as investors or funds based in critically affected regions such as China, the US or Europe might take more time than usual in decision making.

Read full article: financialexpress.com