EstVCA COVID-19 survey results

09 April 2020
Tags: covid19 survey

A COVID-19 impact survey conducted by the Estonian Private Equity & Venture Capital Association (EstVCA) amongst its members revealed that private and venture capital funds in Estonia continue to invest in their portfolio companies and are ready to make new deals even in the time of crisis, even if more cautiously. 

According to the survey, 75% of private and venture capital fund managers confirmed that the runway of their portfolio companies is longer than six months and most of the funds are ready to continue investing. 

Half of the funds will continue to invest on the same basis as in the pre-crisis period, but some are adjusting their strategies. "Of course, the willingness of funds and angels to invest does not mean that all start-ups and growth companies significantly affected by the crisis will find a solution to their financing problems. The investment criteria of the funds are the same or even stricter,” said Margus Uudam, Chairman of EstVCA. 

The impact of the crisis for portfolio companies was assessed to being somewhat negative or neutral by 64% of respondents, 14% see also some potential positive impact and 22% of portfolio companies are affected in a severe negative way. 

EstVCA COVID-19 survey and its key findings in a nutshell: 

  • The survey was conducted on the 1st week of April 2020.
  • 89% of PE/VC funds that are members of EstVCA participated in the survey.
  • All the PE/VC funds in Estonia assure that the capitalisation for 3-6 months period is very good, and all the funds offer full support to their portfolios and continue their investment activities.
  • 75% of respondents say that their runway is currently longer than 6 months, so in the nearby months all are well capitalised and in case of potential hardships, funds will find ways to assist their portfolio companies from their resources.
  • The results of the survey prove that in case the crisis should last longer than 6 months, additional measures are needed to support the ecosystem in Estonia and EstVCA has for the matter compiled a special crisis team to elaborate potential means for the situation to be ready for a constructive dialogue with the state.

A selection of survey results:

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