As a B2B software investor, we like to support the startup community with content. We hosted a Q&A on fundraising & cash planning amidst Covid19. 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.
How long will it last?
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.
Most Important 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!
And last but not least, as we say in Dutch ‘rain is followed by sunshine’!