It’s been interesting to watch Q2 play out in VC land – especially given the disconnect between Wall Street and Main Street throughout the Covid pandemic. While initially a cataclysmic drop-off in funding was expected, the industry overall was not as affected as originally thought. Similar to the public markets, many investors continued to see a buying opportunity and had re-allocated their portfolios to support their likely winners. A key takeaway – early stage funding continues to face some challenges while late stage appears to have fared better. Many early stage B2C companies, however, are struggling.
This piece from the NYTimes highlights that B2B (or B2B2C) can be sexy again. Consumerization in this space recently led by Slack, Zoom and Affirm, among others, has shown that there is an increased interest in the sector both from investors and enterprises/end users.