NFX —an early-stage venture firm based in San Francisco— surveyed 286 seed-stage and Series A Founders and 114 VCs on April 3, 2020, to capture sentiment data during the COVID-19 crisis. The VC & Founder Sentiment Survey is an ongoing initiative to track how early-stage Investors and Founders are reacting to the COVID-19 crisis. The goal is to provide a reference point to the community in the midst of one of the most unpredictable climates we’ve seen.

1. APRIL 3
2020
Part I

2. About
NFX is an early-stage venture firm based in San Francisco that
is transforming how true innovators are funded. As founders
ourselves, we built 10 network effect companies with more
than $10 billion in exits across multiple industries and
geographies.
We believe that creating something of true significance starts
with seeing what others do not.
www.nfx.com @nfx

3. Roadmap
Part I - About the Survey
Part II - Founder Survey Data
Founder Sentiment | Company Changes | Fundraising
Part III - VC Survey Data
VC Sentiment | Strategic Changes | Startup Valuations
Part IV - Historical Data, in partnership with Crunchbase
‘08 Downturn Recovery Timeline

4. Part I
About the Survey

5. The VC & Founder Sentiment Survey is an
ongoing initiative to monitor sentiment data and
help shed light on how early stage Investors and
Founders are reacting to the COVID-19 crisis.
The goal is simply to provide a reference point to
the community in the midst of one of the most
unpredictable climates we will ever face.
5

6. 286 Seed-Stage & Series A Founders &
114 VCs provided their sentiment on
important questions, such as:
● How long do Founders think it will be before the economy
recovers? What about VCs?
● Are VCs really investing at the same pace? Has their investment
strategy changed?
● Are Founders changing their fundraising plans? What do VCs
recommend they do?
● What percentage of Founders have made layoffs?
● What is the impact on hiring? How many have implemented
freezes?
● What are other Founders doing to cut expenses?
● What are the biggest concerns of the Founder community? And
the VC community?
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7. Part II - Founder Survey Data
Founder Sentiment | Company Changes | Fundraising

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13. Part II - Founder Survey Data
Founder Sentiment | Company Changes | Fundraising

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20. Part II - Founder Survey Data
Founder Sentiment | Company Changes | Fundraising

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23. Part III - VC Survey Data
VC Sentiment | Strategic Changes | Startup Valuations

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26. Part III - VC Survey Data
VC Sentiment | Strategic Changes | Startup Valuations

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32. Part III - VC Survey Data
VC Sentiment | Strategic Changes | Startup Valuations

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37. Part IV - Historical Data
‘08 Downturn Recovery Timeline

38. 2008 Downturn Recovery Timeline
We partnered with Crunchbase to review funding patterns from
seed to Series C through the last downturn to understand the
impact of the 2008 financial crisis, and what we can learn for
today. Startups are being guided by investors to plan for a two
year runway to be able to survive this downturn.
From Crunchbase data, we observe a funding reset that started in
the fourth quarter of 2008. 2009 was the low point down by 36
percent year over year for seed through Series C funding amounts.
2010 grew year over year by 45 percent. It took two years for
funding amounts to exceed 2007 and 2008 invested amounts.
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40. Fundraising Observations from the 2008 Downturn
Funding counts for Series A through C cut back by 27 percent in
2009.
Counts grew in 2010 and recovered in 2011 above 2008 funding
counts. It is interesting to note that seed counts — not shown in the
next slide — grew through this timeframe, as a newer institutional
funding stage.
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42. NFX is an early-stage venture firm based in San Francisco that
is transforming how true innovators are funded. As founders
ourselves, we built 10 network effect companies with more
than $10 billion in exits across multiple industries and
geographies.
We believe that creating something of true significance starts
with seeing what others do not.
www.nfx.com @nfx
About