Venture capitalists ready to support high-growth businesses


The following article was published in ICAEW Insights on 13 August 2021:

Dr Keith Arundale, Senior Visiting Fellow at the International Capital Market Association Centre and Non-Executive Director of Henley Business Angels, considers the prospects for venture capital firms

Like other sectors of the economy, the pandemic “really shook everybody” in the venture capital industry and “a lot of the fundraising and investing stopped,” says Dr Keith Arundale.

Venture capital firms were focusing on their existing portfolios, making sure that they were adequately financed, and not so much looking at new deals unless they had already started the due diligence.

But firms got used to the virtual working world of Zoom and Microsoft Teams. Despite venture capital being a relationship business, they adapted, even doing the due diligence virtually – although a physical meeting at least once at the start is a prerequisite, he cautions.

“Things really picked up in the second half of 2020 and it ended up actually being a very good year for venture capital,” Arundale says.

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