The most likely case in our view is that you'll see a significant retrenchment in liquidity for primary capital from new sources. The most notable impact of that will be this fairly extraordinary bifurcation that we expect to happen where perceived high-quality assets, high-quality companies, will have a relatively easy fundraising environment and essentially everyone else will have a very challenging fundraising environment.
Frankly, inside partnerships, inside venture firms, those people are not all equal. You can see some strange dynamics where if it's a junior person who pushed a transaction inside a fund and maybe that company is not a meaningful percentage of that fund that's a risk for you as a founder to have to think through.
Conversely, fintech companies offering a 'nice to have' product in this environment are likely to struggle as consumers and businesses make decisions about where to curtail their spending. For companies with strong balance sheets, this will create some opportunities for M&A, and I expect we'll see consolidation in the space.Advice:
First, the clear number one is the safety and well-being of employees around the world. We tell our portfolio companies: if you or your teams encounter significant health related challenges, please reach out and we will do what we can to help. Most importantly, we all need to continue to play defense and take care of our people and ourselves during this period of uncertainty.Act deliberately but not hastily, and consider not only the economic implications of your actions you take but also the human ones.Ana Capella, head of strategic investments at JPMorgan ChaseIt goes without saying that it's important for all companies to have sufficient dry powder to weather this storm.
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