Venture Capital, Angel Investors

Directions
Post your initial response to the Discussion Questions by midnight on Thursday. Reply to a peer response for each Discussion Question by Sunday midnight. Use the concepts learned from the text as well as from outside sources (at least two [2] are required) for compiling the response to each Discussion Question. Cite the sources used in the Discussion Question posting as well as in the peer responses IAW APA Format.

Important: Your grade for the responses you post in our Discussion Area will be determined not only by your responses to the assignment questions but also by your responses to your fellow students’ postings. Be sure to reply to at least one posting for each Discussion Question. Otherwise, five points will be deducted from your grade.

Startup Funding Dwindles Due to Coronavirus Slowdown
By Angus Loten | March 25, 2020

Topics: Venture Capital, Angel Investors

Summary: Early-stage funding for startups is drying up as the coronavirus outbreak puts investors on edge, spelling trouble for large corporations looking to snatch up innovative technology and talent. Capital from seed-stage funding, often the first significant source of cash for new ventures, has declined by about 22% globally since January, according to an analysis by CB Insights, a market-intelligence company. Startups are a major source of emerging technology and skilled workers for large companies, which have been on a shopping spree in recent years for promising ventures. Without funding, many startups will fail before catching the eye of corporate buyers, leaving a critical gap in the technology development ecosystem.

Classroom Application: This article provides an opportunity to explore the far-reaching ramifications of the Covid-19 pandemic on financial markets, including early-stage funding.

Questions:
1. Start-ups in what areas are expected to suffer declining funding interest?

2. Why? Start-ups in what areas are expected to suffer stable/increasing interest from funders? Why?

3. Based on the interview referenced in the article, what are the expectations for angel investing in the coming period?

4.What is a potential opportunity for large corporates resulting from the current dislocation referenced in the article?

Read the article from this link:

https://www.wsj.com/articles/startup-funding-dwindles-due-to-coronavirus-slowdown-11585175702
Preferred language style US English