糖心视频

This week alone, I have heard from two different companies that had pitched me stories they were holding off on announcing 鈥渋n light of COVID.鈥�

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Last week, distributed a memo to founders and CEOs of its portfolio companies about the worsening economic situation as coronavirus spreads, and many other media outlets reported.

I鈥檝e also seen posts all over from people cautioning about a slowdown in VC funding and reacting with concern to the tumultuous state of the public markets.

So I decided to ask around myself.

I didn鈥檛 get as many replies as I expected. Perhaps folks just don鈥檛 want to share their revised strategies. Perhaps they鈥檙e still trying to figure it out. I鈥檓 not sure, but for now, here鈥檚 what , general partner of Austin-based, told me on the topic. (For those that don’t know,聽Silverton Partners is arguably one of Austin鈥檚 most active early-stage VC firms with $384 million under management.)

Warning to executives

Flager shared with me some highlights of a note he sent out to key executives across Silverton鈥檚 portfolio this week.

Essentially, Flager said it is 鈥減rudent to assume that fundraising velocity will slow from the fast pace we鈥檝e seen as investors take time to process the new macroeconomic environment.鈥�

He pointed to what transpired economically in 2001 (after 9/11) and 2009 (after the economic downturn) as a reference to what people should likely expect to happen this year.

鈥淢ost investors react to uncertainty with increased caution. Travel restrictions will also make it more difficult to meet investors,鈥� Flager wrote.

Additionally, he said that valuations will likely see pressure from multiple angles.

鈥淔irst, volatility in the stock market and declining multiples will inevitably play through to the private markets. Companies that haven鈥檛 鈥榞otten the memo鈥� and are still recklessly buying growth and burning lots of cash doing so will increasingly be viewed as risky and will see that risk premium reflected in their value,鈥� Flager continued in his note to executives across Silverton鈥檚 portfolio. 鈥淚n some cases these businesses will not be able to attract additional investment at any price. Do not be one of them.鈥�

He also suggested that if a startup in Silverton鈥檚 portfolio is in the middle of closing a round or in the latter stages of a fundraising process, 鈥渋t may make sense to take additional capital.鈥�

鈥淢ore runway in this environment could mean the difference between life and death for your business,鈥� Flager said.

In September 2019, we covered how Silverton had filed paperwork signaling its intent to raise not just one, but a pair of new venture capital funds. The firm was reportedly aiming to raise $120 million for its sixth fund, as well as for a $20 million 鈥渙pportunity fund.鈥�

In May 2018, we reported on the firm closing on its fifth fund, in which it raised $108 million in an oversubscribed round of funding.

Silverton has made 131 knownover its 14-year lifetime at least 42 of them 鈥� and had 28 known . Startups it has backed include insurance comparison marketplace , as well as and , a woman鈥檚 shaving products startup that was recently acquired by P&G.

Some of Silverton’s more recent investments include participating in Austin-based last-mile delivery startup $10.5 million and cybersecurity company $21 million Series B raise (which was led by , 鈥檚 venture arm).

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