We’d like to share a few thoughts and inform you about the actions we are taking at INcapital Ventures. We are living in unprecedented times, with situations evolving very quickly and governments around the world making new policy statements every day. However, some observations are emerging, offering a path forward in these tumultuous times.
COVID-19 has accelerated trends that were already taking place. Legacy business models are being replaced or enhanced with digitized forms. Adoption of technology throughout different sectors will allow businesses to continue to operate and not only survive but also gain competitive advantage. Many of these changes are here to stay and support new ways of interacting between businesses, their employees, shareholders, and consumers. Indeed, the next phase of the Innovation Economy is taking shape now. Technology start-ups will play key roles in these transformations, offering solutions that will alter the way we do business. In general, due to their size, operational efficiency and understanding of customers’ pain points, start-ups can move quickly and adjust to changes in the competitive landscape, consumer demand, and availability of resources. While some start-ups are well-positioned to weather the storm and come out winning, others will fail to drive enough value to sustain their customers and maintain the liquidity required to continue to operate. In some cases, start-ups that cater to certain niches may find their customer base failing to sustain activity altogether.
Like any crisis, the survival of the fittest will clear the path for accelerated growth for those technology start-ups that remain standing. Indeed, some of the best and biggest tech companies grew on the feet of crisis.
At INcapital, we have lived through several crises and economic downturns while operating our own business and we learned how to capitalize on these market opportunities. This experience allows us to advise our founders and create tailored plans to help them move forward. We don’t believe in “one size fits all” and other general statements. Each business possesses a unique set of circumstances. These include managing liquidity and working capital, HR, operational challenges and consumer demand shifts. We are in close contact with our founders and have been having active discussions with them regarding solutions and opportunities.
As Albert Einstein said, in the midst of every crisis, lies great opportunities. INcapital is committed to capitalizing on these opportunities and continuing to look for new businesses that will thrive and come out on top. We are currently in the process of adding a new portfolio company. Please stay tuned for more information in the coming weeks.
Please feel free to reach out to our team to learn more about our outlook and opportunities.
Regards,
Inbar Haham & Natty Nashman