While the coronavirus pandemic has walloped the economy, investors in young businesses have not been scared off by the sour economic environment, according to a survey by the North Coast Ventures (NCV), the Cleveland-based investment fund that focuses on early-stage businesses in Ohio
In a survey of more than 100 of its 250-plus investors, 58% of the respondents said the COVID-19 environment has not affected their investment decisions at all, while only 7% said they have cut off all their investment activities. Another 24% said they had cut back investing moderately, while 11% said they cut back investing significantly.
"Northeast Ohio's startup investors are not on the sidelines," managing director Todd Federman said in an email. "Almost 60% of them report no change to their personal startup investing activities."
The results of the survey were announced at the organization's annual (though virtual) barbecue on Tuesday, July 28. It was conducted over 10 days earlier this month. NCV has invested over $60 million in more than 50 young companies through four seed funds and two venture funds.
Federman said that at least five of its portfolio companies have raised seven-figure rounds of financing since the pandemic hit.
"Investors know they have to support their portfolio companies and have largely been responsive in the current environment," he said.
The survey also found that respondents make 60% of their early-stage investments in companies that are within 100 miles of their home.
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August 01, 2020 at 12:20AM
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Pandemic hasn't scared off startup investors - Crain's Cleveland Business
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