Illustration: Sarah Grillo/Axios

Venture capitalists are almost all working from home, but they have not stopped investing in startups.

The big picture: Axios yesterday spoke or emailed with 40 different U.S. firms, and every single one of them reports that they are still actively doing deals — several signing term sheets within the past week.

Why it matters: Startups and their employees are particularly vulnerable to economic shocks, given that they often are unprofitable or even pre-revenue. Venture capitalists are sitting on enormous amounts of available capital, and so far haven't been scared off from using it.

  • Yes, some pricing is beginning to soften, while at least a few deals have collapsed or been delayed.
  • There also are questions on whether some in-process sales to public companies will be retraded (particularly now that WHO has declared a pandemic). And for still-active negotiations throughout M&A, we're hearing that "material adverse effect" definitions and closing conditions are being revised.

What they're saying:

"What else are we going to do all day stuck at home except look at deals?"
"We're investing, but a bit more slowly because we're no longer learning about new opportunities at community events."
"Some of the best VC investments are made in a downturn."
"At first Zoom was a huge win for its investors. Now it's a huge win for all of us."

Look ahead: U.S.-based venture capitalists are sitting on record amounts of dry powder, having raised over $100 billion in fund capital over the past two years. That could become the industry's saving grace due to the denominator effect and the fact that recent fund returns could plummet (particularly for firms that held onto public securities from recent IPOs).

The bottom line: For venture capital, it's business as unusual.

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Hong Kong media tycoon Jimmy Lai arrested under national security law

Media tycoon Jimmy Lai at the Next Digital offices in Hong Kong in June. Photo: Anthony Wallace/AFP via Getty Images

Hong Kong pro-democracy activist Jimmy Lai has been arrested for "collusion with foreign powers" and the offices of his newspaper raided, said Mark Simon, an executive at the tycoon's media firm Next Digital on Monday.

Why it matters: He was arrested under the new national security law that gives Beijing more powers over the former British colony. Lai is the most prominent person arrested under the law — which prompted the U.S. to sanction Chinese officials, including Hong Kong leader Carrie Lam, over Beijing's efforts to strip the territory of its autonomy.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 1:30 a.m. ET: 19,861,683 — Total deaths: 731,326 — Total recoveries — 12,115,825Map.
  2. U.S.: Total confirmed cases as of 1:30 a.m. ET: 5,044,864 — Total deaths: 162,938 — Total recoveries: 1,656,864 — Total tests: 61,792,571Map.
  3. Politics: Pelosi says states don't have the funds to comply with Trump's executive order on unemployment — Mnuchin says Trump executive orders were cleared by Justice Department.
  4. States: New York reports lowest rate of positive coronavirus test results since pandemic began
  5. Public health: Ex-FDA head: U.S. will "definitely" see 200,000 to 300,000 virus deaths by end of 2020. 
  6. Schools: 97,000 children test positive for coronavirus in two weeks — Nine test positive at Georgia school where photo showing packed hallway went viral .

97,000 children test positive for coronavirus in two weeks

A boy has his temperature checked as he receives a free COVID-19 test in South Los Angeles in July. Photo: Mario Tama/Getty Images

At least 97,000 children tested positive for COVID-19 in the final two weeks of July and there's been an estimated 338,000 cases involving kids in the U.S. since the pandemic began, a new report finds.

Why it matters: The findings in the report by the American Academy of Pediatrics and the Children’s Hospital Association comes as schools and day cares look to reopen in the U.S., with New York Gov. Andrew Cuomo (D) announcing Friday that school districts in the state can reopen in the fall amid lower coronavirus transmission rates.