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A Great Time for Startup Investing

A Great Time for Startup Investing
By Adam Sharp
Date April 7, 2020

These are strange and unique times. The world is changing in ways we couldn’t have imagined even six months ago.

Everyone seems to be wondering when things will return to normal. In many ways, I don’t think things are going to return to normal. This crisis has exposed a lot of deep problems, including an overreliance on debt and global supply chains.

Those are things that need to change, badly. And while I’m sure governments will put together huge rescue packages, I believe all the real progress will be made by the private sector – especially young startup companies.

I believe the disruption this crisis has caused is just getting started. And it will lead to huge opportunities for nimble and lean startups.

This crisis will also cause a lot of people to stop investing in startups altogether. That means startup valuations will go down.

To be clear, I’m not saying it’s going to be easy to find great startup opportunities. A crisis like this attracts a lot of bad operators looking to take advantage of the situation.

Investing alongside solid investors, and doing due diligence, will remain of the utmost importance.

But I do strongly believe that there’s a silver lining here too. As large companies with too much debt struggle, opportunities will open up in every industry imaginable. And hopefully the world will rely less on debt and financial shenanigans going forward.

So despite all the craziness, I will continue to look for great startup opportunities online, mostly on AngelList. I am reviewing every deal I get invited to carefully. I recommend you all do the same.

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