Skip to main content

Survey Results: What Is VC Investor Sentiment Today?

To understand the effects of the COVID-19 outbreak on the venture capital sector, we recently conducted a survey of venture firms to gauge investor sentiment on investment activity and fundraising. Within a few days, 427 venture firms responded, demonstrating the strong desire to share information across the venture community.

Some key observations:

  • 81% of respondents plan to do two or fewer investments per quarter in 2020 compared to only 56% in 2019.
  • On average, nearly 70% of fund portfolio companies have at least 12 months of cash, a surprisingly high number in our findings, albeit perhaps a function of burn reductions recently executed at most companies.
  • A majority of respondents expect valuations will drop over 21% across stages and geographies.
  • Only 20% of respondents are modifying reserve targets; and those who are doing so are also boosting their reserve ratio by about 25%.
  • Are funds that are raising — or planning to raise — reducing (target) fund size? Nearly 40% are.
  • For those fundraising and planning on fundraising in 2020, nearly half of sub-$50MM funds are expecting to downward modify their fundraising target.
  • Silicon Valley funds are least likely to modify fund target down, while ~50% of funds outside of U.S. are planning on downshifting their fund target.

To read the findings of the survey, download the report below. We hope that this helps you form a perspective on industry trends, and we look forward to hearing from you on how this aligns with your observations and strategy.

This information is governed by our Terms and Conditions of Use.

Related Content

You're now leaving First Republic.

By clicking Continue, you will be entering a third-party website. First Republic is not responsible for the content, links, privacy policy or security policy of this website.

Complete the information below to download the report.