Venture Capital trends in Israel during the Coronavirus outbreak

Foreword by Gonzalo Martinez de Azagra,Co-founder and General Partner at Cardumen Capital.

Survey created by Noa Shamay, Analyst at Cardumen Capital.

In the weeks during confinement we were surprised by more and better quality dealflow. We wondered if this was due to the confinement or due to our recent PR regarding the closing of our $60 million technology fund.

To answer this question we conducted a survey at the end of April to understand how other VCs were reacting to the crisis and what they were perceiving from the market. Here are the main takeaways from 67 VCs that responded to our survey.

42% of the funds reported changing the investment strategy due to Covid-19 since the beginning of the outbreak. We presume this could have to do with sectors (avoiding travel and hospitality) and investment (tightening terms or focusing more on the portfolio).

66% of investors will be willing to invest without personally meeting with entrepreneurs.

VC funds reported a decrease in deal flows during the crisis. This does not match Cardumen Capital’s…