During the current COVID-19 lockdown many companies have found investment has dried up, be it for those looking to expand and even more so for Start Ups. Many have found that VC’s, Angel Funds and Investors are worried about putting their investment in to companies especially when they don’t know when they will be opening their doors again.
Despite the seemingly gloomy outlook, the market isn’t closed according to Oliver Lawson , associate at Alantra — an international financial services firm that works with clients across multiple sectors, including wellness and fitness, to help them raise funds.
Lawson says “We’re still busy and working, we still have live deals that are moving forward, so the world isn’t on hold but everything is being seen through a different lens,”.
When asked if angel investors were holding off making new investments, John Sechrest, of Founder of Seattle Angel Conference replied
No. I think that the best pattern is to keep writing regular checks in a regular pattern. In good years and in bad years. The better investments will come from the resilient companies in the bad years.
So what sectors are investors looking at? Scott Hinkle, Creator of AngelPowwow.com stated
I’m actually increasing investments in must-have sectors, such as trucking, and health/social/activity sectors.
The world is certainly changing and people are looking at what is important to them now and what they will want to maintain after the lockdown’s have been lifted. We have seen great acts of kindness and compassion with many supporting those unable to leave home and those working on the frontline health services and in food stores. People are also looking more at themselves and what they need to stay happy and healthy.
Two sectors that are set to continue to benefit from both investors and the publics interest in them are the emerging markets of the adult lifestyle and CBD sectors.
Before the lockdown came in to force, new UK based sex toys brand Vibio launched and reached and passed their initial Kickstarter crowdfunding target. They are now entering their first equity investment round and joint founder Alma Ramirez Acosta said.
We were worried at the beginning when one angel investment fund we were in discussions with said they were holding back on new investments at this time, however, we have had a number of angel investors who are still open to completing their interest in us during this period as they see the long term goals and opportunities we offer.
Another company pushing forward with their discussions with investors is CBD pleasure and wellness brand Hirsini. With CBD manufacturing being one of the essential businesses still operating and many using CBD products at these times to aid their health and wellbeing, Hirsini are gaining a great amount of interest from investors.
So as an investor, what are your plans? Are you holding back or are you still looking for companies to invest in and ready to move forward with during this current period.
My team at InCrowd Capital are busy talking with interested investors on a number of investment opportunities. If you are interested in more details on a number of opportunities in these emerging markets please email jm@incrowdcap.com. You can also follow InCrowd Capital LinkedIn Page and Twitter to keep up to date on news.