We are working closely with each of our portfolio companies to help them tide over these tough times. Here are key areas that we are actively engaging with them on:
Accounts Payables (AP), other liabilities: Heavily encourage deferring payments to partners/vendors etc.
With each company we have reviewed every item of fixed costs, rationalized each and then decided to either defer or cut expenses to reduce burn and hence increase runway.
Debt: We have introduced teams to multiple venture debt (Trifecta) and debt (Caspian, Unitus Capital, Other banks) providers to address working capital issues.
Equity funding: Some of our companies are in various stages of raising next rounds of equity capital. Time is of the essence and we are working with these founders to prioritize closing these rounds, being prudent about the terms and singularly focus on getting money in the bank.
It is not doom for all companies. We are working with the founders to relook at their product roadmap for new products and markets that they can unlock.
For e.g. Awign is looking at servicing demand from industries such as food, pharma delivery etc., that are thriving and critical during lockdown. Awign is also leveraging a bunch of use cases like calling, data tagging etc. now enabled because of WFH.
Our portfolio is uniquely positioned to cross leverage market opportunities. In the spirit of generating revenues and leveraging resources smartly, a couple of our portfolio companies are working together and helping each other through the lockdown. For e.g. Awign is tapping into the trained pool of drivers that DriveU has in order to fulfill hyperlocal deliveries for their customers.
During such times it is critical for portfolio CEOs to over-communicate, to keep the four key stakeholder groups, customers, employees, investors and partners, informed and motivated. Being transparent about the challenges with the business and maintaining trust are critical and we are coaching the CEOs and helping them do this right.