Author: Daniel Gašpar, partner, Crowdberry
At present, it is difficult to anticipate the challenges that await us in the coming weeks and months. The coronavirus and the Covid-19 pandemic will continue to affect all of us personally and professionally. We remain at an economic and geopolitical turning point. It will take a long time for our economies to recover from the pandemic. But with well-managed investments with a focus on high-quality founders and the right sectors and products, it is possible to turn even such a crisis into an advantage and consistently generate attractive capital returns for investors. Locally.
The situation surrounding the coronavirus has tested not only the inner workings of society, but also of private companies. Paradoxically, it is from China – where the coronavirus originated and spread throughout the world – that the expression that bears the idea of both the crisis and the turning point comes: weiji. This term accurately describes what our generation will go through in the coming period. It would be premature to talk about specific ramifications, because further developments may play out according to different scenarios. However, we at Crowdberry see several clues as to how this “tectonic shift” in the world economy and local behaviour will influence the future of business and overall trends. Some of them can also be an inspiration for investors and future investment opportunities:
Local investment in small and medium-sized enterprises has a fundamental impact on domestic companies, while external shocks can also have a positive effect on companies’ business models. We are currently observing a similar situation with some companies in the Crowdberry portfolio (e.g. GymBeam and Isadore Apparel). In more complicated situations – where a helping hand is needed – it is possible to overcome a difficult period with targeted control of investments and support for investors, allowing companies to gain a better competitive position in the market with their products and services.
Of no less importance, the allocation of domestic capital to local companies also helps our economy and secures job opprotunities. Local investment can then directly support a change in the structure of the economy toward sectors with higher value added. For our future.