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Covid-19 has brought about a paradigm shift across industries, and venture investing is no exception. The pandemic and ensuing lockdowns have influenced consumer behaviour and preferences majorly, may be even permanently in some cases.
To understand how the investment landscape has transitioned amidst the Covid-19 pandemic and its impact on long-term investing, Entrepreneur India interacted with Vinnie Lauria, founding partner, Golden Gate Ventures, an early-stage venture capital (VC) firm in Southeast Asia. Lauria shared his views on the nitty-gritty of investments along with the bounce back plan for businesses.
Impact of Pandemic on Investment and Bounce Back Approach
Most of the work operations continue to be remote in Singapore and Indonesia despite lifting of lockdown restrictions. “In a market like Indonesia, people are working from home and locked down. There were certain presumptions about bounce back in a short time-frame,” says Lauria.
It is essential for term investors to check the growth level of companies and that their growth plans for the next decade has to be reflected over, he added.
Even though economies across the world have been hit by the pandemic, certain verticals, such as edtech and healthtech, have grown due to this phase.
VCs look upon trends, growth plan and future of the company while making an investment decision. However, COVID-19 has compressed the vision of five years into five months. At the same time, the growth scale has become swift over the past few months, especially for digital businesses. For instance, online education, grocery, health and tech startups have grown immensely, gaining from the opportunity in the market.
Investment Prospects During the Pandemic
Vinnie said that even during the pandemic, investments on both existing as well as new projects are being made.