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UNCERTAIN VENTURES: Amid Coronavirus Outbreak, Some in the VC Sector Are ‘Flying Blind’

The company usually works with enterprise companies like Dell and Cisco, but now may offer products and pricing aimed at smaller companies.

"It doesn't make sense to for us to be to be firm on pricing when we know we can help companies and it will all be stronger in the future with with a more vibrant or robust ecosystem," Allison said.

While the company is well-funded for now, Allison said it's unclear if even 2021 will be as strong as the 2019 venture market or what raising funds will look like.

"The venture market does not know what the price of a company a share of a company like mine looks like. It's very volatile, as is the broader, publicly traded market, and nobody really knows what the price of corporate equities are big and small," Allison said. "There's a ton of uncertainty. I assume that venture markets won't be the same."

'This is challenging' While all the uncertainty swirls, Pacitti said, many VC investors are taking a wait and watch approach.

"As we get better visibility investors will start to lean back in but, this is challenging," Pacitti said. "We value companies currently on historical growth, and on future growth, As we look at 2020 forecasts and 2021 forecasts, it's hard to know what's realistic, relative to future growth, and how to value these companies."

Regardless, the VC market is not shutting down, Ball said.

Many VC firms look long-term and raise funds that last 10 years or more, Ball said, and firms are still talking with companies.

Even amid the downturn, Ball said, successful companies could be born. "From a business perspective, great companies are created in the downturn," Ball said. "It forces people to focus on what's important in their business." ___ Distributed by Tribune Content Agency, LLC.

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