Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.This morning brought fresh economic bad news for the United States economy, with over 700,000 jobs lost in the latest report, despite the window of time measured not including some of Marchs worst days, and the data itself not counting as many individuals as it might have; the unemployment rate still rose nearly a full point to 4.4%.
The barometer generally expected to rise far higher in a months time.Rising unemployment, markets in bear territory, shocking weekly unemployment claims, and some major states just starting lockdowns paint the picture of protracted downturn that has swamped our national and state-led economic response.
Some help is coming, but individual payments are probably too small and too late.
And a key program aimed at helping small businesses is rife with operational mistakes that will at least delay rollout.Its an economic catastrophe, and one that wont lead to anything like a V-shaped recovery, the vaunted shape that everyone holding equities through the crisis was hoping for.
Were entering a prolonged slump.
Precisely how bad isnt yet known, yes, but its going to be bad, with unemployment staying elevated into 2021.The impacts of the national economic slowdown are going to change the face of venture capital as weve come to know it during the last ten years.
How so? Lets talk about it.After picking through some COVID-19-focused PitchBook data this morning, its clear that the era of founder-friendly venture terms is heading for a reset.
Even more, recent economic and market data, A Technology News Room research and select trends already in motion help paint a picture of a changed startup reality.So this morning lets talk about what is coming up for the world of upstart companies and risk embracing capital.