In “The Small Business Bible,” USA TODAY business columnist Steven D. Strauss notes that competition for VC funding is intense. Individual VC firms “may receive greater than 1,000 proposals a year” and are mainly thinking about companies that require an investment of a minimum of $250,000. They will often solely put money into startups that show potential for explosive growth.
But the decimation of American small businesses will inflict more insidious, long-lasting hurt too. “We are seeing an entire wipeout of a cohort of entrepreneurs and younger corporations,” Lettieri stated. “And there’s nothing arising behind them.” The pandemic will mean the triumph of franchise chains over mom-and-pop retailers, of C-suite executives over entrepreneurs working of their basements. It will mean town centers full of banks and 24-hour pharmacies quite than bookstores and nail salons and takeout counters. It may even mean fewer start-ups competing with incumbents.