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The “high velocity society”.
We live in a world where we have become accustomed to adapting our behaviour to changes brought about by technology and innovation. However the Coronavirus pandemic, and the disruption it has caused, has caught us all by surprise. Society has been forced to alter its way of living and mode of working overnight, with the associated challenges thereof. However, as Joe Cohen points out in his article Resilient Bodies and Resilient Companies, there will undoubtedly be some black swans that emerge out of this crisis.
As venture investors we have had to re-jig the way we operate from focusing on growth to cost-savings and extending runways! During these times we are benefiting from our activist style and close relationships with the portfolio entrepreneurs, by rolling our sleeves up and working with the companies to ensure they can trade safely through this tough period. Companies that can get through this will be faced with the biggest challenge of their corporate life, but can hopefully take advantage of the opportunities this crisis will present and emerge stronger on the other side.
Stay safe.
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CONCENTRIC & PORTFOLIO NEWS
We have worked with every portfolio company to identify cost reductions, extend cashflow runways, explore financing options, apply for relevant Government support initiatives, implement remote working procedures and simply be there for moral support.
Furthermore, and something alien to us, we have allocated time to lobbing relevant industry bodies for the appropriate level of Government support to be extended to the technology sector – something that has been missing to date in the UK.
Companies are often built during periods of crisis and we are working tirelessly to ensure ours come out on the other end in a stronger position. We have seen a fantastic response from our founding teams so far, it has been highly encouraging indeed.
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Insly’s cloud-based recurring revenue model will prove robust throughout this crisis. Their broker product is likely to receive a strong boost as insurance brokers to will have to their work dashboard when working remotely. Despite this, Insly and its Founder/CEO Risto Rossar have worked diligently on structuring the business for the ongoing crisis. Risto recorded a video message that communicates his corporate plan to his staff and board.
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The acquisition of their main competitor Hostmaker was carried out in February. In a short space of time, the Houst management team put a lot of effort into ensuring the integration of Hostmaker was done smoothly for the thousands of hosts it works with across the world. This process also included slimming the combined organisation, especially where there was a clear overlap of business functions. Currently the travel sector has been hard hit by travel restrictions. Houst is busy discussing with banks, investors and industry partners to strengthen its position ahead of further sector consolidation.
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Existing investors, including Concentric, finalised an equity injection to provide Neteven with growth capital as well as to optimise shareholder base. Greg Zemor talks about the business prospects here. The company is experiencing significant increase in demand from high-street retailers for its online marketplaces integration services. This has resulted in significantly increased turnover / GMV (gross merchandise volume) as online marketplaces stand to benefit from the ongoing crisis.
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HomeHero closed a bridge equity round earlier in the year after hitting over £1m in monthly revenues. Growing steadily, despite limited marketing spend due to their product offering and value proposition. Utilities are of course non-cyclical and so the business is well positioned to weather the current storm.
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Last week Public launched Techforce19, a joint initiative with NHS - the UK’s health service - to provide technology solutions to the frontline. They have received over 1000 quality applications and have unlocked £500,000 from the NHS.
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UPCOMING EVENTS
- We are sad to announce the postponement of the 5th Oslo Tech Excursion, scheduled for 23rd April 2020. Please note the new date is 22nd April 2021.
- Please don't hesitate to reach out to any Concentric members if you have any questions or remarks regarding the current crisis, our portfolio, or thoughts you may want to share with us.
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Concentric (
www.concentricteam.com
) invests into software-driven technology businesses that are solving «real problems» and automating traditional economy sectors such as financial services, mobility, real estate, logistics, industrials, retail etc. Concentric was founded in 2013 by Kjartan Rist and Denis Shafranik - active European venture investors for the past 20 years. The fund has offices in London and Copenhagen and invests across the major Northern and Western European tech hubs.
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