Capitalism is taking a breather due to the corona virus.
The United Kingdom’s two largest crowdfunding platforms have noted at least a 20% decrease in crowdfunding campaigns going “live” and in public investments in on-going ones.
According to the website Sifted, CrowdCube has 9 of 27 campaigns that have seen zero investment.
Of course, this is not unexpected with the public stock markets in turmoil. When public liquidity diminishes or becomes more volatile there is typically a rush to safety, and that often means that investors want to stay in cash.
In this time of uncertainty as to even whether one will be getting his/her next paycheck, putting money into startups is considered to be even a more risky bet.
Once the clouds clear, it’s likely that this pause in startup investing will accelerate.
Let’s hope it’s sooner rather than later.