The coronavirus crisis has changed a lot of things for a lot of people. It’s also resulted in a significant amount of global economic uncertainty. Venture capitalists do not thrive on uncertainty, they thrive on calculated risks and transparent long-term outlooks.

But despite the tumultuous impact of COVID-19, can there still be a positive road ahead for VCs looking to expand their portfolios in a complicated climate?

Investing in innovation

At its beating heart, venture capitalism is all about investing in innovators and perhaps the only positive thing about a crisis is that its wake often necessitates innovation.

VCs must continue to innovate in kind if they hope to survive the ramifications of coronavirus. But what does the post-COVID immediate future of venture capital look like?

Keeping it close – With a heightened real and perceived risk internationally and difficulties to travel, many VCs will likely choose to invest closer to home in the coming months.

The strong win out – Virus or no virus, the best companies will always draw the most interest regardless of where they’re located.

So, whilst it might be more convenient to shop closer to home, so to speak, and there may be a funding pause for a while, video conferencing can fill in the gaps when it comes to facilitating parts of the due diligence process.

Healthcare in, entertainment and travel out – With healthcare very much on the minds of everyone right now, healthcare tech is going to start looking a lot more tempting for many VCs. On the other hand, businesses focused on areas, such as travel and entertainment (particularly live music), are going to take a backseat for a while.

Virtual working – Investments in technologies that facilitate virtual engagement are likely to become more attractive to investors as more of us are working from home and going digital.

The new normal – Businesses are going to need to adapt to the ‘new normal’ of social distancing whether they like it or not and that’s going to result in some major economic and behavioural changes.

VCs are going to have to be vigilant in examining the residual impact of this new status quo if they want to invest wisely and gain some decent returns.

VCs and insurance

Most tech-based businesses are 24/7 operations that are both global and borderless and as such, they are constantly being exposed to new potential risks and liabilities – often in unfamiliar places.

As the law struggles to keep pace with technology, specialist insurance can provide a legitimate safety net if you fall foul of changing legislation.

It’s important to know that all companies you invest in are properly insured – to ringfence the risk in your investments, La Playa can help with your due diligence, identifying the business risk, providing an Enterprise Risk Report and recommending a programme of bespoke insurance and risk management.

We can also help with your business insurance.  While your commercial appetite for risk may be higher than average, you’ll want to know your internal business risk is nailed down most efficiently and effectively.

One thing we’ve learned in a post-COVID world is that nothing should be taken for granted and that legislation is constantly in flux.

In such a climate, don’t you want to eliminate the maximum possible risk – and to know your insurance is being taken care of by somebody that speaks your language?

That’s why specialist science and technology insurance is something that any VC with at least one finger in the tech pie should specify in contracts.

Who wants a jack-of-all-trades behind the wheel when the goalposts are constantly being moved from beneath our feet?