We’re in the midst of a big shift. The world is changing every day, and there’s uncertainty in our lives and the market. When the pandemic hit, teams had to move to remote-work, overnight. Investors have become more risk-averse. First-time fund managers found themselves struggling to raise capital, and experienced fund managers had to adopt a digital approach for their day-to-day operations, fundraising, and deal flow activities.
Private Equity International surveyed 120 fund managers who raised $100 million or more, on COVID-19’s impact on fundraising; The results show only 38% of firms have a handle on their fundraising regardless of the pandemic, and a mere 4% canceling altogether. This leaves 58% of firms rethinking their fundraising strategy. The expectation is technology will play a major role to assist firms in their fundraising strategy
Only 38% of firms have a handle on their fundraising regardless of the pandemic.
More than half the managers in the process of actively raising investor capital are expecting to adjust fundraising periods. Almost half of those seeking an extension to the fundraising period expect this to be of more than three months.
- 43% We are extending the fundraising period
- 38% We will carry the fundraise to the same timetable
- 15% We are pausing the fundraise period indefinitely
- 4% We will abandon the fundraise
With the reduced in-person communication and disruption to standard modes of operations, it’s clear Private Equity and Venture Capital firms that haven’t chosen a digital-first strategy are in a risky position. Committing to a complete digital transformation puts your firm on the offense and prepares you to react to the events and revolutions in the market quickly and consistently.
