Essential Startup Advice During a Pandemic

TL;DR

The venture world transitioned seamlessly to remote investing over Zoom; startup formation and fundraising have returned to pre-pandemic levels and above. Founders should focus on the same fundamentals—achieving product-market fit, conserving cash, and being “default alive”—but with greater intensity given economic uncertainty.

Key insights

• Venture investing over Zoom proved far more effective than expected, with minimal slowdown after the initial March–May 2020 shock.
• YC’s application volume and founder quality have remained high or increased; the summer 2020 batch (entirely virtual) saw strong fundraising outcomes.
• The core advice of “being default alive” (surviving without external capital) is more critical during a pandemic: founders should think harder about product-market fit and conserve cash.