Ramphastos Investments Comments on the Outlook for Venture Capital Industry

SINGAPORE, June 22, 2020 /PRNewswire/ -- The venture capital (VC) industry was going through exciting times before the world faced one of the worst public health crises in its history. Once the pandemic struck, the focus almost immediately shifted from pursuing growth to ensuring the survival of portfolio companies, and this remains the priority at present. "Despite the huge impact of the current health crisis on Asian markets, which first felt the consequences of prolonged lockdowns, the VC industry showed relative resilience during the first quarter of 2020," notes Philip van Wijngaarden of Ramphastos Investments, a private equity and venture capital company. "However, VC players will likely tread with great caution for the rest of 2020 and in 2021, possibly beyond that, given the economic uncertainty. While high-tech, healthcare, and life sciences startups may continue to attract strong interest, overall VC investment activity is expected to decline significantly in the months ahead as priorities change and plans undergo re-evaluation."

A number of surveys and analyses indicate that the VC industry will not grind to a halt in the near future, but, in general, investors are adopting a defensive attitude and favoring the wait-and-see approach, Ramphastos Investments comments. In the first quarter of 2020, global VC investments totaled $61 billion, down from $65.6 billion a year earlier, according to the latest edition of KPMG Private Enterprise Venture Pulse. The drop reflected the hit on Asian markets, where the pandemic first took its toll. Despite the slide, the overall numbers compare favorably to historical norms, the report says, noting that all other major regions recorded increased investment activity. "Given mobility constraints, deal-making processes globally are expected to slow considerably in Q2'20. VC deals that do occur will likely focus on follow-on funding to companies within a VC investor's current portfolio and on companies that speak to a specific need in the current situation, such as productivity solutions, edtech, and logistics and delivery," comments KPMG partner Kevin Smith.

A survey conducted by PitchBook revealed a high degree of caution among industry players along with indications of a forthcoming pullback. However, the somber mood revealed by the findings does not translate into a complete shutdown of activity – while around 29% of limited partners (LP) will suspend commitments in the six months ahead and over 20% envision some reduction in their allocations, 37% expect no change, and roughly 14% are even planning an increase. Ramphastos Investments interprets the data available so far as an indication that VCs will have to overcome significant challenges in the next year or two, but some of them will also be in a strong position to seize opportunities created by record-low interest rates and depressed valuations.

Established in 1994 by passionate entrepreneur Marcel Boekhoorn, Ramphastos Investments is a Dutch-based venture capital and private equity firm dedicated to driving top-line growth at enterprises in all stages of their evolution. Favoring a hands-on approach to business building and a non-conformist mindset, the company typically seeks to acquire majority stakes and proceeds to collaborate with company leaders to pave the way for enduring success. After buying into a business, Ramphastos Investments works tirelessly to implement a robust value-creation strategy while also providing all the advice, tools, and assistance required to execute on it. Its primary focus as an investor is on driving revenue growth through buy-and-build strategies, marketplace innovation, internationalization, management empowerment, and strategic partnerships.

Ramphastos Investments Reviews the State of Private Equity Industry Amid Global Pandemic: https://finance.yahoo.com/news/ramphastos-investments-reviews-state-private-123600575.html

Philip van Wijngaarden - Crunchbase: https://www.crunchbase.com/person/philip-van-wijngaarden

Marcel Boekhoorn - Founder-owner @ Ramphastos Investments – Crunchbase: https://www.crunchbase.com/person/marcel-boekhoorn

Contact Information:
Ramphastos Investments
Philip van Wijngaarden
[email protected] 
+31-0-317-722-722
https://www.ramphastosinvestments.com

SOURCE Ramphastos Investments