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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.

Go deeper

Dan Primack, author of Pro Rata
37 mins ago - Economy & Business

Scoop: Red Sox strike out on deal to go public

Illustration: Sarah Grillo/Axios

The parent company of the Boston Red Sox and Liverpool F.C. has ended talks to sell a minority ownership stake to RedBall Acquisition, a SPAC formed by longtime baseball executive Billy Beane and investor Gerry Cardinale, Axios has learned from multiple sources. An alternative investment, structured more like private equity, remains possible.

Why it matters: Red Sox fans won't be able to buy stock in the team any time soon.

Trump political team disavows "Patriot Party" groups

Marine One carries President Trump away from the White House on Inauguration Day. Photo: Patrick Smith/Getty Images

Donald Trump's still-active presidential campaign committee officially disavowed political groups affiliated with the nascent "Patriot Party" on Monday.

Why it matters: Trump briefly floated the possibility of creating a new political party to compete with the GOP — with him at the helm. But others have formed their own "Patriot Party" entities during the past week, and Trump's team wants to make clear it has nothing to do with them.