The entrepreneur’s guide to surviving corona featured in U.S. 1 News
Insight Dror Futter · May 28, 2020
Remember all those articles about whether venture was overvalued? With blinding speed, they now seem quaint. Bluntly stated, most venture backed companies are in a fight for survival. Although certain areas of life sciences may do somewhat better, I think the impact will be widely felt. Complicating the fight is the fact that no one can predict how long it will last and what the immediate post-Corona economy will look like.
To survive entrepreneurs need to focus on actions within their control. Based on past downturns, it is impossible to overstate the importance of having cash in the bank and a flexible cost structure to weather the storm.
This article highlights what ventures can do to increase their ability to survive the Corona Crash. First, the article discusses how the current situation is likely to impact your venture and your key stakeholders — investors, customers, and suppliers. Then it highlights the levers you can deploy to lengthen your runway and increase your flexibility.
Dror Futter focuses his practice on startup companies and their investors, and has worked with a wide range of technology companies. His fifteen years’ experience as in-house counsel includes positions with Vidyo, Inc., a venture-backed videoconferencing company, and New Venture Partners, a venture fund focused on corporate spinouts. Prior to that, Mr. Futter was Counsel to the CIO of Lucent Technologies, as well as supporting parts of its sourcing organization. Read more about Dror here.
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