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| Start-Ups Are Pummeled in the ‘Great Unwinding’ | Start-Ups Are Pummeled in the ‘Great Unwinding’ |
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| SAN FRANCISCO — After a crush of travel cancellations in March, WanderJaunt, a short-term home rental start-up in San Francisco, laid off 56 of its 240 employees last week. | SAN FRANCISCO — After a crush of travel cancellations in March, WanderJaunt, a short-term home rental start-up in San Francisco, laid off 56 of its 240 employees last week. |
| Demand for services from Wonderschool, a start-up that helps people find day care and preschool providers, dropped by half, leading it to cut most of its 60-person staff. | Demand for services from Wonderschool, a start-up that helps people find day care and preschool providers, dropped by half, leading it to cut most of its 60-person staff. |
| And at ClassPass, which offers a membership program for fitness classes, over 95 percent of revenue evaporated in just 10 days as studios and gyms around the world shut down. To survive, the start-up slashed spending, froze hiring and rushed to build a video streaming service for virtual workouts. | And at ClassPass, which offers a membership program for fitness classes, over 95 percent of revenue evaporated in just 10 days as studios and gyms around the world shut down. To survive, the start-up slashed spending, froze hiring and rushed to build a video streaming service for virtual workouts. |
| “This is the great unwinding,” said Martin Pichinson, head of Sherwood Partners, a Silicon Valley advisory firm that restructures failed start-ups. In recent weeks, he said, his firm has fielded a “firestorm” of calls — a volume three or four times the highest he had ever seen. | “This is the great unwinding,” said Martin Pichinson, head of Sherwood Partners, a Silicon Valley advisory firm that restructures failed start-ups. In recent weeks, he said, his firm has fielded a “firestorm” of calls — a volume three or four times the highest he had ever seen. |
| Start-ups have always been risky, designed to grow fast or die, but the coronavirus pandemic is turbocharging Silicon Valley’s natural selection and causing a shake-up so sudden it has defied comparison. In just a few weeks, more than 50 start-ups have cut or furloughed roughly 6,000 employees, according to a tally by The New York Times. Plans for initial public offerings are on hold. And funding is drying up for many young tech companies. | Start-ups have always been risky, designed to grow fast or die, but the coronavirus pandemic is turbocharging Silicon Valley’s natural selection and causing a shake-up so sudden it has defied comparison. In just a few weeks, more than 50 start-ups have cut or furloughed roughly 6,000 employees, according to a tally by The New York Times. Plans for initial public offerings are on hold. And funding is drying up for many young tech companies. |
| The fallout is hitting the highest-profile start-ups as well as the smaller ones trying to disrupt them. Airbnb, the home rental start-up valued at $31 billion, has stopped hiring and has suspended $800 million of marketing. Bird, an electric scooter start-up, laid off 30 percent of its staff last week, while Everlane, an apparel company, cut or furloughed hundreds of workers. | The fallout is hitting the highest-profile start-ups as well as the smaller ones trying to disrupt them. Airbnb, the home rental start-up valued at $31 billion, has stopped hiring and has suspended $800 million of marketing. Bird, an electric scooter start-up, laid off 30 percent of its staff last week, while Everlane, an apparel company, cut or furloughed hundreds of workers. |
| The real estate start-ups Knotel and Convene have laid off or furloughed half of their workers. The hiring site ZipRecruiter cut around 40 percent of its staff. OneWeb, a satellite start-up that had raised $3 billion in venture funding from investors including SoftBank, the Japanese conglomerate, filed for bankruptcy on Friday and plans to sell itself. And travel start-ups — Vacasa, Sonder, Inspirato, Zeus Living and TripActions, among others — have been some of the hardest hit. | The real estate start-ups Knotel and Convene have laid off or furloughed half of their workers. The hiring site ZipRecruiter cut around 40 percent of its staff. OneWeb, a satellite start-up that had raised $3 billion in venture funding from investors including SoftBank, the Japanese conglomerate, filed for bankruptcy on Friday and plans to sell itself. And travel start-ups — Vacasa, Sonder, Inspirato, Zeus Living and TripActions, among others — have been some of the hardest hit. |
| Daniel Zhao, a senior economist at Glassdoor, a workplace review and job listings site, said the situation facing start-ups now was worse than in downturns like the dot-com bust in the early 2000s and the financial crisis of 2008. | Daniel Zhao, a senior economist at Glassdoor, a workplace review and job listings site, said the situation facing start-ups now was worse than in downturns like the dot-com bust in the early 2000s and the financial crisis of 2008. |
| “The coronavirus outbreak is economically akin to a major hurricane occurring in every state around the country for weeks on end,” he said. | “The coronavirus outbreak is economically akin to a major hurricane occurring in every state around the country for weeks on end,” he said. |
| The numbers are stark. In March, job listings at the 30 most valuable start-ups in the United States dropped 19 percent, or an average of 21 jobs each, according to Thinknum Alternative Data, a research company. Start-up funding in the first three months of 2020 was also on a pace for its second-steepest quarterly decline in 10 years, said CB Insights, which tracks start-ups. | The numbers are stark. In March, job listings at the 30 most valuable start-ups in the United States dropped 19 percent, or an average of 21 jobs each, according to Thinknum Alternative Data, a research company. Start-up funding in the first three months of 2020 was also on a pace for its second-steepest quarterly decline in 10 years, said CB Insights, which tracks start-ups. |
| Start-ups in some areas — telemedicine, food delivery, online learning, remote work, gaming — are thriving amid the quarantines. And there were signs that the boom times were shaky even before the coronavirus brought wide swaths of the U.S. economy to a halt. | Start-ups in some areas — telemedicine, food delivery, online learning, remote work, gaming — are thriving amid the quarantines. And there were signs that the boom times were shaky even before the coronavirus brought wide swaths of the U.S. economy to a halt. |
| But the pain is now deeper and most likely just beginning, especially as investors, already bruised by a string of disappointing I.P.O.s last year, become even more cautious. On March 5, Sequoia Capital, a top venture capital firm in Silicon Valley, issued a warning to start-ups, calling Covid-19 “the black swan of 2020.” | But the pain is now deeper and most likely just beginning, especially as investors, already bruised by a string of disappointing I.P.O.s last year, become even more cautious. On March 5, Sequoia Capital, a top venture capital firm in Silicon Valley, issued a warning to start-ups, calling Covid-19 “the black swan of 2020.” |
| Bill Gurley, an investor at the venture capital firm Benchmark, said that over the past 10 years of the start-up boom, investors had taken on more and more risk. That has changed, leaving many of the riskiest start-ups exposed. | Bill Gurley, an investor at the venture capital firm Benchmark, said that over the past 10 years of the start-up boom, investors had taken on more and more risk. That has changed, leaving many of the riskiest start-ups exposed. |
| “‘Risk on’ happens slowly,” he said. “‘Risk off’ happens overnight.” | “‘Risk on’ happens slowly,” he said. “‘Risk off’ happens overnight.” |
| For start-up workers, the past few weeks have been sobering. Many had bought into the tech industry’s change-the-world ideals, had few boundaries between their work and personal lives and hoped for big payouts if their start-ups went public. | For start-up workers, the past few weeks have been sobering. Many had bought into the tech industry’s change-the-world ideals, had few boundaries between their work and personal lives and hoped for big payouts if their start-ups went public. |
| Now they were being laid off over video calls. | Now they were being laid off over video calls. |
| At Bird, the Los Angeles scooter start-up, which had once been valued at as much as $2.5 billion, hundreds of employees were invited to a video conference call on Friday morning with just an hour’s notice. On the call, the voice of an unidentified executive explained that their jobs had been eliminated. A slide outlined the terms: a month of severance pay, three months of medical benefits and one year to exercise their stock options. | At Bird, the Los Angeles scooter start-up, which had once been valued at as much as $2.5 billion, hundreds of employees were invited to a video conference call on Friday morning with just an hour’s notice. On the call, the voice of an unidentified executive explained that their jobs had been eliminated. A slide outlined the terms: a month of severance pay, three months of medical benefits and one year to exercise their stock options. |
| The workers were asked to mail in their laptops, said Jenny Alvauaje, a Bird data analyst who was on the call. Some workers missed the call but learned they had been laid off when they lost access to internal systems shortly after, she said. | The workers were asked to mail in their laptops, said Jenny Alvauaje, a Bird data analyst who was on the call. Some workers missed the call but learned they had been laid off when they lost access to internal systems shortly after, she said. |
| In a statement that called the layoffs “a difficult decision,” a Bird spokeswoman added, “We purposefully and intentionally did not have any video on to protect privacy as we delivered the news live to individuals.” | In a statement that called the layoffs “a difficult decision,” a Bird spokeswoman added, “We purposefully and intentionally did not have any video on to protect privacy as we delivered the news live to individuals.” |
| The end was equally abrupt for Nik Buenning, 40, a data scientist at Panoramic, a marketing software start-up in Los Angeles. He was just settling into his work-from-home setup on March 23 when a companywide email said to expect a call from human resources. | The end was equally abrupt for Nik Buenning, 40, a data scientist at Panoramic, a marketing software start-up in Los Angeles. He was just settling into his work-from-home setup on March 23 when a companywide email said to expect a call from human resources. |
| Right away, he said, “people started sending Slack messages like, ‘I’m out.’ ‘I’m out.’ ‘I’m out.’” An hour later, he was out, too. | Right away, he said, “people started sending Slack messages like, ‘I’m out.’ ‘I’m out.’ ‘I’m out.’” An hour later, he was out, too. |
| Mr. Buenning signed up for Upstream, a new networking app that unveiled itself earlier than planned to cater to tech workers affected by coronavirus layoffs. Sites like Silver Lining are also helping people connect with companies that are still hiring. | Mr. Buenning signed up for Upstream, a new networking app that unveiled itself earlier than planned to cater to tech workers affected by coronavirus layoffs. Sites like Silver Lining are also helping people connect with companies that are still hiring. |
| Many start-up workers have added their names to Google spreadsheets, which recruiters share in weekly newsletters like Layoff List, created by a recruiting company called Drafted. Hiring managers, venture capitalists and start-up advisers read the newsletter, said Vinayak Ranade, chief executive of Drafted. | Many start-up workers have added their names to Google spreadsheets, which recruiters share in weekly newsletters like Layoff List, created by a recruiting company called Drafted. Hiring managers, venture capitalists and start-up advisers read the newsletter, said Vinayak Ranade, chief executive of Drafted. |
| Some laid-off workers said they might flee to the safety of the largest tech companies, which are sitting on piles of cash and benefiting from increased use in the quarantines. | Some laid-off workers said they might flee to the safety of the largest tech companies, which are sitting on piles of cash and benefiting from increased use in the quarantines. |
| When Kenyon Brown, 24, a product manager, left his job early this year at Mariana Tek, a software company in Washington, he had eight or nine promising job leads at start-ups. Those quickly evaporated as the virus spread. He said he was now more open to big tech companies since they were still hiring. | When Kenyon Brown, 24, a product manager, left his job early this year at Mariana Tek, a software company in Washington, he had eight or nine promising job leads at start-ups. Those quickly evaporated as the virus spread. He said he was now more open to big tech companies since they were still hiring. |
| The situation “has definitely forced me to think about my short-term career in another light,” he said. | The situation “has definitely forced me to think about my short-term career in another light,” he said. |
| The start-up survival guide reads something like this: Cut spending, lower prices on products, renegotiate fixed costs for things like leases and ask the government for assistance for the fitness studios, home rental operators or gig workers they rely on. | The start-up survival guide reads something like this: Cut spending, lower prices on products, renegotiate fixed costs for things like leases and ask the government for assistance for the fitness studios, home rental operators or gig workers they rely on. |
| Some entrepreneurs said they viewed the coronavirus as a moment to rally around their company’s mission, citing the “wartime C.E.O.” idea popularized among start-ups by the venture capitalist Ben Horowitz. It states that executives facing an “imminent existential threat” do whatever it takes to win. | Some entrepreneurs said they viewed the coronavirus as a moment to rally around their company’s mission, citing the “wartime C.E.O.” idea popularized among start-ups by the venture capitalist Ben Horowitz. It states that executives facing an “imminent existential threat” do whatever it takes to win. |
| Updated June 12, 2020 | |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| “There are no distractions now,” said Michael Chen, 30, chief executive of WanderJaunt, the short-term home rental start-up. | “There are no distractions now,” said Michael Chen, 30, chief executive of WanderJaunt, the short-term home rental start-up. |
| Mr. Chen’s four-year-old company, which had raised $27 million in funding, has slashed its prices; a house that rented for $700 a night now goes for $100, for instance. And it has switched its focus from vacation travelers to those displaced by the virus, like stranded college students, people seeking a separate work space or medical workers isolating themselves from family. | Mr. Chen’s four-year-old company, which had raised $27 million in funding, has slashed its prices; a house that rented for $700 a night now goes for $100, for instance. And it has switched its focus from vacation travelers to those displaced by the virus, like stranded college students, people seeking a separate work space or medical workers isolating themselves from family. |
| At Sonder, a travel start-up in San Francisco that laid off 282 people and furloughed 135 of its 1,254 workers last week, the speed of decision-making has increased from a few days to a matter of hours. | At Sonder, a travel start-up in San Francisco that laid off 282 people and furloughed 135 of its 1,254 workers last week, the speed of decision-making has increased from a few days to a matter of hours. |
| “In many ways it’s energizing, but it’s also quite chaotic,” said Francis Davidson, chief executive of Sonder, which raised $345 million in funding and was valued at $1.1 billion. He said his investors had advised him to cut fast and deep to allow employees to hit the job market before things got worse and to avoid multiple rounds of layoffs. | “In many ways it’s energizing, but it’s also quite chaotic,” said Francis Davidson, chief executive of Sonder, which raised $345 million in funding and was valued at $1.1 billion. He said his investors had advised him to cut fast and deep to allow employees to hit the job market before things got worse and to avoid multiple rounds of layoffs. |
| “People that are looking for a really coddled environment should not be in start-up land,” he said. “You need to have thick skin and a high adversity quotient.” | “People that are looking for a really coddled environment should not be in start-up land,” he said. “You need to have thick skin and a high adversity quotient.” |
| Many venture capital firms are flush with cash from record-breaking hauls in recent years. But they may not decide to use the money to keep struggling start-ups alive. | Many venture capital firms are flush with cash from record-breaking hauls in recent years. But they may not decide to use the money to keep struggling start-ups alive. |
| “There’s no doubt that this will be a time of weeding out of start-ups that can’t survive,” said Mike Jones, an investor at the venture capital firm Science. | “There’s no doubt that this will be a time of weeding out of start-ups that can’t survive,” said Mike Jones, an investor at the venture capital firm Science. |
| One venture capital firm in San Francisco, Alpha Bridge Ventures, said it was too small to pour more money into its start-up investments. The firm has made a promise to the founders it has backed: If their companies fail because of the coronavirus, it will give them $25,000 for their next company. | One venture capital firm in San Francisco, Alpha Bridge Ventures, said it was too small to pour more money into its start-up investments. The firm has made a promise to the founders it has backed: If their companies fail because of the coronavirus, it will give them $25,000 for their next company. |
| “We can at least take one burden off their shoulders,” said Jake Chapman, an investor at Alpha Bridge, adding that two or three of the firm’s 21 investments are at risk of failing. | “We can at least take one burden off their shoulders,” said Jake Chapman, an investor at Alpha Bridge, adding that two or three of the firm’s 21 investments are at risk of failing. |
| In lieu of networking events and lavish retreats, venture firms are now dispensing advice in blog posts, on Twitter and at virtual panels over Zoom. At a March start-ups event, Alexis Ohanian, an investor at Initialized Capital in San Francisco, encouraged founders to adapt to the new reality. | In lieu of networking events and lavish retreats, venture firms are now dispensing advice in blog posts, on Twitter and at virtual panels over Zoom. At a March start-ups event, Alexis Ohanian, an investor at Initialized Capital in San Francisco, encouraged founders to adapt to the new reality. |
| “If what you’re doing now is just not a viable solution in this new world and in a different economy,” he said, “then find something that is.” | “If what you’re doing now is just not a viable solution in this new world and in a different economy,” he said, “then find something that is.” |