As we begin to create a “new normal” for life with Covid-19 (coronavirus), there is a lot of discussion about how “work” is going to change.
During the peak of the outbreak, to comply with stay-at-home orders, many who could would work from home- did. This was especially relevant for tech companies who already used various collaboration tools to enable long-distance team work. In some cases this transition seemed almost natural. Some even argue that the pandemic has sped up market adoption rates by as much as 10 years for these tools, essentially changing the nature of work as we know it.
It would seem to me, that this can work well for pure software companies. However, for hardware being developed in the shop or biotech being developed in a lab, things are a little more complicated. Indeed, many parts of the innovation can be outsourced these days, but the core science needs to be done within the company. And, at the end of the day, someone, somewhere, needs to get in the lab to run the experiment and record the results. Most of us cannot do this at home.
Across our portfolio we have seen different approaches to the work-from-home situation. Anyone who could accommodate did, and most have shared only limited dips in productivity or even improvement. This seems to support the research about time wasted in traffic and the stress it creates, taking a toll on the productivity of our teams.
As someone who has been working out of the home office for almost 10 years, this was a non-issue for me. I knew how to hold video conference calls and had a comfortable working environment where I could be productive. I was more than happy to spend less time in traffic or at coffee shops for the two-days-a-week of meetings-in-person schedule which I was keeping. But I do miss visiting the portfolio companies. The insights from being on the ground are vital to providing good counsel to a CEO.
For us, the biggest challenge so far has been the inability to meet with founders of potentially new portfolio companies. It is much harder to assess the passion, conviction and nature of a founder when you only meet virtually. I remember this from my early days as an investor when I was reviewing companies with the team at TechU, where everything was done by video conference. I needed to “feel” the team to get comfortable. So when we set out to start our own fund, we made this a priority. At Sapir VP we are deeply engaged with the founders since we see ourselves as part of their team. We don’t dial-it-in, figuratively or literally.
As such, while we have been very active as investors during the pandemic closing a new investment each month, this may change in the near future. As we move forward with the opportunities we had engaged with before the pandemic locked us at home, and look to move forward with newer opportunities, even the ones we really like, we find harder to commit to. The concern is not about the tech, the market or the terms of a round. Rather it is truly about the people and whether we are a good fit to support them on their journey.
At the moment, we are trying to overcome this hurdle by spending more time with these founders, online. This has slowed down our process. It is frustrating to us just as it must be for the founders we are engaging with. I am sure we will miss out on working with some great teams because of this, but I prefer not to keep them hanging if we can’t get there at the moment.