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.