Finance Monthly April 2020 Edition

Therein lies the opportunity for investment, which otherwise would unlikely have become available. The opportunity to support these businesses, both financially and with experience, could make all the difference to keeping the population well cared for and supported as long as required. This challenging time will also shine a light on certain sectors that otherwise would not have seen much attention. In the past three years, somewhat surprisingly, no individual sector has seen significantly more investment than another. SeedLegals data has been fairly consistent with investors being agnostic to the industry they back. Now, however, we think it’s likely that MedTech, EdTech and social impact start-ups, as well as the others already mentioned, will see more attention than their peers, at least in the short term. for optimism for both businesses and investors. Firstly, there are many companies which are now literally saving lives. Those in online healthcare, manufacturing and even fitness apps are helping to keep the country moving. The UK is one of the most obese nations in the world today and helping those to keep as active as possible is a very necessary service. These businesses will be placed under more strain than ever before, none more so than food delivery services like Deliveroo, Uber Eats and many of their smaller competitors. Prime Minister Johnson called on the British public to use these as much as possible, which naturally will do wonders for their valuations but will require significant investment to keep pace, grow and develop as required. t’s going to be a difficult fewmonths for many, but one of the best ways to mitigate risk is to invest further whether this is in time or money. Sales and the financial runway have undoubtedly taken a hit, resulting in the need to protect your asset. A quick bridging loan or purchasing some additional capital might solidify a venture at this time. By simply spending any spare time you have with their executive team, you can help to guide them through these challenges, ensuring a solid return on your investment in the future and placing yourself at the front of the queue for their next financing round once the company returns to health. This is clearly a very worrying period but even in these conditions, we, at Seedlegals, have seen many reasons COVID-19: Society today is experiencing a time like no other. A lockdown of over a quarter of the world’s population has been sprung upon us. Access to everyday essentials like food and space has been severely limited, with government decree that people are to only leave their homes once a day. Naturally, a seismic event like this has impacted everything in its path, leaving no individual or business spared. Since mid-February, we’ve seen lots of investors withdraw from investments in response to COVID-19, creating even further pressure on thousands of start- ups and scaleups across all sectors. Sadly, more will be applied in the coming months due to the movement limitations impacting any travel, tourism or hospitality businesses. Deborah McGargle, Chief Legal Officer of SeedLegals HOW CAN INVESTORS MITIGATE RISK? I INVESTMENT - COVID-19 48 www.finance-monthly.com