Funding for e-commerce could slow to a trickle

Life for the Internet consumer business will change dramatically in the aftermath of the global pandemic as investors turn cautious with capital and shift focus from growth to P&L. Financial support could slow to a trickle, according to Satish Meena, senior analyst at Forrester Research, who expects little big-ticket funding for start-ups this year.
A fair number of term sheets were pulled back between mid-February and March end, Atit Danak, principal at Zinnov Consulting, told FE. “The risk capital is available but the risk parameters have changed,” Danak added.
Meena believes VCs could stay away from new ventures altogether while cautiously supporting the existing investments until the sentiment improves sometime in December or early next year.