Posts By / seth levine

PPP and Women and Minority-Owned Businesses โ€“ We Need To Do More

Iโ€™ve published a number of posts over the past few weeks about some of the challenges of the existing PPP loans and in particular, about my concerns that the loans arenโ€™t getting to as many of the smaller businesses that need them. In this CNBC op-ed article, Elizabeth McBride and I pointed out how the face of entrepreneurship in the United States is changing. Specifically, the number of women-owned businesses has increased 31 times between 1972 and 2018 (in 1972, women-owned businesses accounted for just 4.6% of all firms; in 2018 that figure was 40%), according to the Kauffman Foundation. But the aid programs are largely failing to address the needs of these key entrepreneurial communities and the PPP loansโ€ฆ

Extending and Expanding Aid โ€“ Some Policy Ideas

I was recently asked to put together some ideas for consideration for the next economic package that congress is currently working through and which I hope will both extend existing programs put in place to dampen the blow of the economic crisis brought on by Covid-19 but also extend that aid to critical areas of the economy that arenโ€™t yet being supported by current programs. I touched on some of the issues in two OpEd pieces I co-authored with Elizabeth Macbride in the last two weeks (here and here in case you missed them). There wasnโ€™t space in those to really flesh out a number of ideas that I think are worth thinking about, and I was only in theโ€ฆ

What Policymakers Donโ€™t Understand About Small Business

Entrepreneurship in the United States has been changing in ways that many people have not yet recognized. Iโ€™m working on a much more extensive piece on these changes (and have been for some time โ€“ more on that project in a future post) but as the Covid-19 crisis took root, it became clear to me and my writing partner, Elizabeth Macbride, that policy-makers fail to understand the nature of entrepreneurship and small business in America (from the composition of entrepreneurs to the types of businesses they are starting to the rise of the โ€œgigโ€ economy) and that this failure was causing them to miss the mark on programs they were implementing to help. Last week, Elizabeth and I wrote anโ€ฆ

Settling In

As we enter week 5 (yes โ€“ I had to go back to my calendar and count) of our Covid-19 self-quarantine I find myself alternating between the comfort of my new routine and the uncertainty of not knowing when this will all be over. And for that matter, what โ€œoverโ€ in this context means (How quickly will things return to some sense of pre-quarantine normalcy? Is that even possible at this point? What things from my new quarantine life will I miss? Will we be out and about too soon and have to shelter in home again as the virus spikes back up?). Itโ€™s a lot to take in. In many respects Iโ€™ve come to at least understand, if notโ€ฆ

SBA PPP Loans Arenโ€™t for Everyone

Thereโ€™s a healthy debate going on right now at many VC firms about whether venture-backed companies should apply to the SBAโ€™s Payroll Protection Program (The Information had a good article on this yesterday (paywall), and Albert Wenger from Union Square Ventures put up an excellent post on the subject here). This program is designed to help businesses struggling with the Covid-19 crisis retain employees and pay for critical infrastructure (specifically rent, mortgage and utilities). I wrote an OpEd piece for CNBC yesterday with Elizabeth Macbride that outlined a number of ways that the program, as currently implemented, is failing to reach many of the businesses it was intended to support. The program is complicated, being implemented through only a subsetโ€ฆ

Weโ€™re Not Doing Enough to Help Small Businesses

Elizabeth Macbride and I wrote an OpEd piece that was posted on CNBC this morning addressing what we believe to be significant shortcomings of the CARES Act and the SBAโ€™s Payroll Protection Program (PPP). Specifically how the stimulus is failing to meet the needs of small businesses around America in this time of crisis. This is urgent and needs to be addressed as soon as possible. Iโ€™d encourage you to click through to read the full piece, but below Iโ€™ve outlined the key recommendations we make at the end of the OpEd: 1. Set up individual loan funds Anticipating that the federal aid would roll out slowly, states, communities and foundations have set up their own loan funds, often with donations,โ€ฆ

Meet your COVID-19 CFO

A lot of companies are struggling to figure out how to respond to the economic crisis that was precipitated by COVID-19. Should they cut staff or should they furlough them (and whatโ€™s the difference)? Should they ask people to take a pay cut? How much should they be cutting back on marketing and other expenses? What can they negotiate with their landlord? What are the federal programs that might support their business through this? How can they apply for the new PPP (Payroll Protection Plan) SBA loans? Itโ€™s a lot to take in. At Foundry weโ€™ve been having daily briefings, calls and email updates with our portfolio to try to stay on top of it. Thatโ€™s great for the companiesโ€ฆ

Investing in Downturns

TBH, I havenโ€™t been thinking much about new investments at the moment. Iโ€™ve been asked many times how I think the Covid-19 crisis will change investor behavior and fundraising for startups. I generally give the kind of answer I think most VCs give and say something about how we all know that down markets are great markets for companies to grow (lots of great companies have been started in downturns), that thereโ€™s a lot of capital sitting on the sidelines at the moment and that capital will have to be invested, etc. All true, but I think not entirely well thought through in most cases. For example, I also generally point out that despite most investors saying this, the vastโ€ฆ

Tips For Working from Home From The Foundry Network

Over the past week Iโ€™ve been gathering work-from-home tips from Foundry Group portfolio companies. Here are some of the best suggestions โ€“ from WFH veterans as well as some newbies quickly getting up to speed. I highlighted a few that I thought were particularly good ones. Work Space Create a dedicated work space distinct from high traffic or personal areas. Make sure that itโ€™s uncluttered, professional and comfortable. You will also want to have good lighting and A/V accessories. If a dedicated space isnโ€™t feasible, get creative and find some workable nook in your home where youโ€™re comfortable and can focus. Listen to some music. If youโ€™re in a lot of meetings this can be hard, but try to squeezeโ€ฆ

Some additional jobs resources

A few more quick thoughts building on my Job Hunting in a Time of Crisis post from a few days ago: Here is a link to a spreadsheet that lists out remote jobs as of Feb (there are 1575 on the list). Ross Freeman sent me this link to โ€œ100 Developer Jobs โ€“ Companies still hiring amid the coronavirus crisisโ€  Mike Volkin suggested targeting industries like Health and Wellness, EdTech (online education and remote learning) and even remote collaboration tools to keep staff and teams aligned (i.e.Zoom and Slack). Can you provide services to companies in these industries. And for business owners, bring your business online (weโ€™re already seeing this in personal fitness, coaching, medicine, etc).  And, of course, in caseโ€ฆ