Venture Capitalist Discusses Investing Throughout the Pandemic

Since the pandemic started, there have been significant changes in the investing world. New opportunities have risen, but there have been hardships for everyone. Today, I will be interviewing Rob Schultz, who works for Serra Ventures. Serra Ventures is a Venture capital firm from Champaign, IL that primarily focuses on technology companies. Rob will give us his first-hand experience on how Covid has impacted technology and investing opportunities within his company. 

This interview has been edited for length and clarity.

Interviewer: How did Serra Ventures originate?

Rob Schultz: Serra Ventures started by investing in technology companies that originated out of the University of Illinois research. The University of Illinois has a long tradition of inventing world changing technologies. Serra Ventures saw the opportunity to invest in companies that can change the world. 

Interviewer: Has these past two years been the hardest time for you guys since then?

Rob Schultz: In some ways yes, but in some ways no. The venture capital business is very much about getting to know people and to get to know founders of companies personally. Given the pandemic, it was hard to develop personal relationships with people at the level we could before. We had to adapt to new technologies like zoom to get to know people. We also had to rely on our network of people that knew them as personal references. On the positive side, a lot of companies were focused on enabling people to do things remotely. For example, one of our companies enabled building construction to be monitored at a very detailed level remotely. During the pandemic the need for this company’s products surged.

Interviewer: What other opportunities have risen for you guys?  

Rob Schultz: Another major opportunity is that innovation and new companies are being started across the country because of remote working, as opposed to the past companies tended to be formed in Silicon Valley and New York. This has leveled the playing field for lesser known VC firms like Serra Ventures to compete against very well known VC firms.

Interviewer: Do you think things will ever go back to normal how they were before Covid? 

Rob Schultz: No, I do not think work as we know it will go back to normal. However, I think we are in a new normal that has a lot of efficiency. I think people are comfortable working remotely and relying on video conferences rather than in person. It will save money and time on travel. However, I do think there will be a balance where people do want to meet in person and in the office. I do think personal human interaction is important for creativity and collaboration to happen. 

Interviewer: What have been some of the most challenging things for start-up companies during Covid?
Rob Schultz: Bringing new employees into the company and keeping a sense of culture in the corporation has been difficult for startups. This is because when we typically invest they are growing really fast and need to hire new employees. Oftentimes, these new employees are being on-boarded virtually instead of in person. So, it is hard to give them a sense of values and the mission of the company in a virtual environment.

Crypto Currency Rising in Popularity

As our society and technology continues to evolve, cryptocurrency is becoming more popular. Since the COVID pandemic started, we have become more reliant on the internet and doing activities online. Cryptocurrency has been becoming more mainstream as we use technology more for normal things, such as buying items at a store. According to a poll by Pew Research Center, 16% of Americans say they have ever invested in, traded, or used cryptocurrency. As companies begin to allow cryptocurrency for payment, this percentage is very likely to increase. On the other hand, governments around the world have been skeptical about cryptocurrency. China, one of the largest economies in the world, recently banned transactions using cryptocurrencies. This can change, but it has already affected the way people view cryptocurrency. However, El Salvador became the first country to declare Bitcoin as a legal currency, per Pew Research Center. Even though it is a much smaller economy than China, this shows the rise in popularity of cryptocurrency.

Karan Singh, a 19 year old student from the University of Iowa, is heavily involved in cryptocurrency. “I have spent almost all of the money I have made the past couple years on crypto currency related investments… Not only do I buy cryptocurrency, but I have also figured out how to mine it with my own computer. It has worked out very well for me,” said Karan, when asked about his involvement with cryptocurrency. 

Just like Karan, young men have been most involved with cryptocurrency. Another poll by Pew Research Center shows that about 43% of men ages 18 to 29 have ever invested in, traded, or used a cryptocurrency. This data expresses the rise of popularity in cryptocurrency among the future of our country. Evan Kirts, a football player at the University of Illinois, says, “I have definitely thought about buying crypto currency. I see it all over social media… I just haven’t brought myself to it yet.” Evan says he is going to invest in a cryptocurrency eventually. 

Although some people may believe cryptocurrency is unreliable or dangerous, it has still been a hot topic this year. As the U.S. government continues to discuss regulations for cryptocurrency, we will see the way cryptocurrency is used and prices evolve. 

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