Finance Monthly April 2020 Edition

Of course, as is always advisable, diversifying one’s strategy is key at this time. As we’ve already seen, which is likely to continue for the rest of the calendar year, global markets will see a lot of turbulence. Certain technologies will fall in and out of favour, as well as companies. Ensuring you are backing a plethora of innovative firms should ensure your capital is as well protected as possible. A number of investors will havebeen scared out of the market following the recent troubles but most advisers would suggest that we are now in the perfect time to invest. Companies need support and their valuations are likely less than before, moving the relative price and opportunity balance in favour of the investor. Another shift could see the change in relationships between investors. One thing I’ve long been surprised about is the lack of venture capital and angel “chatter”. Every hour of every day we see founders speaking with their contemporaries about problems, issues, solutions and suggestions. Now, I appreciate that most of the time these would not be competitors, whereas on the investment side of the table if you were to give a tip to someone, they could attempt to steal your lunch money. With the global challenges upon us, a tighter knit investor community will hopefully emerge, especially in the high-growth tech sector which can only be a good thing for all concerned. Staying on this theme, I genuinely believe that the best way to mitigate risk at this difficult time is for everyone to work together. If there is more of an open dialogue then an individual’s concerns or worries could be allayed, leading to increased investment in our society bringing us back to growth. And if you’re concerned about your level of contribution, there are many options around top- up investments to provide enough support to back any company whilst reserving the right to hold back some cash at this time. It is no surprise that investors are being extra cautious about their money, and rightly so. However, the value proposition for the large majority of companies is still there and in most cases, the leadership teamhasn’t changed. The opportunity is still ripe, the founders are still passionate, if not more so, but we just need to help this haze pass by getting involved now, before it’s too late. This will be the best way to break the virus’ hold on our economy. INVESTMENT - COVID-19 49 www.finance-monthly.com