Entrepreneurship in the United States has been changing in ways that many people have not yet recognized. I’m working on a much more extensive piece on these changes (and have been for some time – 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 “gig” 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 an…
Posts By / seth levine
Settling In
As we enter week 5 (yes – 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 “over” 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?). It’s a lot to take in. In many respects I’ve come to at least understand, if not…
SBA PPP Loans Aren’t for Everyone
There’s a healthy debate going on right now at many VC firms about whether venture-backed companies should apply to the SBA’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 subset…
We’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 SBA’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. I’d encourage you to click through to read the full piece, but below I’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,…
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 what’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? It’s a lot to take in. At Foundry we’ve been having daily briefings, calls and email updates with our portfolio to try to stay on top of it. That’s great for the companies…
Investing in Downturns
TBH, I haven’t been thinking much about new investments at the moment. I’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 there’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 vast…
Tips For Working from Home From The Foundry Network
Over the past week I’ve been gathering work-from-home tips from Foundry Group portfolio companies. Here are some of the best suggestions – 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 it’s uncluttered, professional and comfortable. You will also want to have good lighting and A/V accessories. If a dedicated space isn’t feasible, get creative and find some workable nook in your home where you’re comfortable and can focus. Listen to some music. If you’re in a lot of meetings this can be hard, but try to squeeze…
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 “100 Developer Jobs – Companies still hiring amid the coronavirus crisis” 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 (we’re already seeing this in personal fitness, coaching, medicine, etc). And, of course, in case…
CO #COVID-19 Talent Network
With so many jobs being lost to the COVID-19 crisis a group of us thought it would be helpful to put together a talent network to help support those looking for work during this challenging time. We know there are companies out there hiring, and that includes tech companies. The Colorado #Covid19 Startup Talent Network provides job seekers access to upload their profile information and job skills. It also allows companies to search for talent and sort on various job criteria. Please share this network so we can get the word out. You can use this bitl.ly shortlink for ease: bit.ly/COCovid19StartupTalent. You can also quickly share through social media with this ClickToTweet link: https://ctt.ac/fbncf A few thoughts as we launch…
Job hunting in the midst of a crisis
My posts last week (which included predictions of pending lay-offs at technology businesses) prompted a number of people to reach out and ask a variant of the question: “How can I find a job in the middle of a shutdown/meltdown?”. I don’t know that I have a great answer to that but I thought I’d take a stab at it with the hope that some of these ideas will be at least somewhat helpful to those that find themselves in the position of being out of work during this crisis. TBC, while we’ve already seen a number of layoffs, I think there unfortunately are many more coming. Early lay-offs were widespread in the hospitality, travel and related industries. We’re just…