What Startup Investing Looks Like In the Next Six Months

Women 2.0 recently spoke with several experienced female venture capitalists to find out what they think founders should expect in the next several months as they’re fundraising.

Rock Health Director of Research and Marketing Megan Zweig was one of the interviewees. At the time of the interview, Rock Health had recently completed its Q1 2020 Digital Health Fundraising Report.

“As early-stage digital health investors, we’re watching an incredible dichotomy unfold—some of the greatest macroeconomic uncertainty we’ve ever seen, alongside urgent, enormous demand for connected health care solutions,” Zweig said. “With record levels of committed capital in the coffers of VCs and PE firms, investment activity may be tempered in the short term, but we expect to see a flight of capital to quality with competition for the best deals.”

Zweig also noted that “certain sectors—like digital health—are uniquely positioned as they play a mission-critical role in the pandemic response, and the strongest companies will emerge shaping the future of health care delivery.”

Lupa Systems Investment Professional Diya Sagar agrees. “The specific conditions in which we find ourselves mean that startups in particular sectors may find new opportunities to scale, that did not necessarily exist before,” she said. “We may therefore see more funding being allocated towards startups that are poised to benefit from these trends.”

“You’ve got to find investors who believe in your startup and are willing to support you NOW, not in 6 months,” said Milena Bogdanova Bursztyn, a venture investor at Germin8. “There are also investors with plenty of dry powder who will look at this time as opportunistic and will search for deals. Try to identify those investors who align with your vision and will be strategic partners.”

Read the full article here.

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