While so many sectors of the economy were devastated by COVID-19, some sectors flourished such as venture capital that experienced a record year in 2020*, as did some angel investor groups like Keiretsu Forum’s Mid-Atlantic & South-East Regions (K4-MA & K4-SE).
Howard Lubert, Area President of the two Keiretsu Forum Regions, reported with great enthusiasm that K4-MA & K4-SE had 367 unsolicited applications for funding (a 17.6% YoY increase), screened 122 companies, and presented 80 high-quality opportunities to angel group members (a 27% YoY increase).
“Our members really stepped up in 2020, increasing their activity in due diligence and investing, placing $9.5m in 61 companies, an increase of almost $1.5m over 2019’s record setting performance,” Lubert said.
The leaders of Keiretsu Forum’s Mid-Atlantic & South-East Regions attribute the growth of their deal flow during the pandemic to their decisiveness in transitioning to secure, online meetings and due diligence. Their efforts were further bolstered by a wave of investments being made into the Life Sciences area driven by sought after solutions to the global pandemic.
51% of the Group’s investments in that period were made in Life Science companies in the areas of development for testing, treating, and vaccinating against COVID-19—all sizeable investments from the group members.
In addition to online meetings, the first ever Forum Investor Capital Expo was hosted by Keiretsu Forum Mid-Atlantic in collaboration with the Northern California, and Pacific Northwest Regions. It took place in Q4 with thirty-six companies presenting who were considered the best-of-the-best over the course of the year. The eye-catching outcome of the Expo was the funding of 76% of the companies that presented.
Organizers feel that the strong engagement that occurred at the Expo gave a boost of confidence to both members and entrepreneurs at a time when the pandemic was deepening. They are optimistic that high investment levels of the last two quarters of 2020 will continue into 2021, specifically in Biotech and Pharma as focus remain high on vaccines and antivirals.
*US Venture Capital investing set records in 2020 as investors deployed just over $156B and liquidated over $290B in exit value. Major exits occurred in Q3 and Q4. Early-stage investments did not do as well, but had a healthy increase.
Read about a Venture Conference that also went virtual due to the Pandemic
