First of all, stay safe and support your family and community. We are all in this together.
We hosted a serie of Q&A's on fundraising & cash planning amidst Covid19. After several requests we decided to share our sheets including comments.
Please find the slides below.
Knight Venture Capital (www.knight.vc) is a Dutch-based B2B software investor that just closed a new fund. We help software companies scale.
Nobody knows, but these are some guiding principles. Our portfolio companies all work with different scenarios and alter their cash planning based on new insights.
State of Fundraising
Please note that this is a general perspective. VCs that just closed their fund, like ours, will be more open to business compared to other VCs.
Cash planning Input
However, keep in mind that if you cut costs to deep, this will have a sincere effect on how fast you can accelerate after this economic downturn. If your run-rate allows it, it might be better to invest in marketing & sales. Unfortunately, this is a luxury position to be in for most startups that we come across.
Plus, the most important piece of advice:
As having been founders ourselves, we recognize that being short on cash is tough. These can cause extreme stress levels and affect your decision-making.
Lessons we took ourselves are to work hard, but keep a good balance.
Good luck managing Covid19, feel free to reach out to us in case we can support!