The COVID-19 pandemic has created a lot of challenges in the dealmaking space. Deal activity all but halted in March, creating disruption and a great deal of uncertainty that’s challenged dealmakers. Difficulties in diligence, continued limitations on face-to-face interactions and seller hesitancy are all contributing to a slower deal pace.
Funding — the lifeblood of the startup world — has tended toward those with established relationships. While early stage companies that have already landed a few rounds may benefit from cautious investors placing their money on safer bets, that has left some entrepreneurs unable to connect with their first funders. Much like dealmaking in established companies, relationships and networking are critical aspects of growth in the startup world. And those aspects have been limited, as people aren’t gathering as readily as they had been previously.
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Story excerpt provided by Smart Businesss.
Written by Adam Burroughs.
Originally published August 26, 2020.