Packard Place’s monthly Public House looked a little different on Wednesday, March 18*. Rather than its usual setting, Packard Place co-founder, Dan Roselli, leveraged the power of Zoom to foster connection as coronavirus concerns continue to drive the need for social distancing.
The event was a success, with 82 participants logging on to listen to panelists Samantha Smith (founder, Vishion), Thom Ruhe (president/CEO, NC IDEA), and Greg Brown (administrator, Charlotte Angel Fund) discuss the impact the novel virus has had on their day-to-day activities.
The General Consensus on Coronavirus
During the event, Roselli sent out a brief survey to participants regarding their concerns about COVID-19. When asked how they personally feel given the current situation, 84% indicated they felt “concerned, but calm.”
“I’m encouraged that people aren’t freaking out yet,” says Ruhe. “But people’s resolve will be tested as more restrictions are placed on them being able to go out and do things. My advice is to brace for much worse news to come, but be rational, be calm, and get through it together.”
Among the top concerns for entrepreneurs were sales and sales pipeline (61%), cash on hand and runway (39%), and impact on fundraising (39%). On the investor end, most (39%) were concerned with deal flow drying up as the coronavirus continues to contribute to market volatility. Brown was sympathetic to this concern.
“Humans don’t do well with uncertainty, and that’s the main thing to deal with right now,” he said. “On the investor side, the reaction to uncertainty is to hunker down and do nothing. But entrepreneurs don’t have that luxury: Time is their enemy right now. They’re going to have to make a lot of decisions based on not that much data. They’re forced to embrace the risk while the investor side will tend to shy away from that risk.”
Key Takeaways from Packard Place Panelists
When it came to offering advice to founders, the panelists highlighted the importance of remaining flexible, realistic and transparent.
“In terms of raising money, flexibility is the name of the game,” said Brown. “There are going to be bottom feeders that are out there, so don’t take every offer that comes your way, but give yourself as much flexibility as possible. And any founder that’s not currently profitable, 90% of you need to think about reducing your overhead. You need to start basing your decisions on the scenario that’s worse than what you think is the current worst-case scenario.”
“Be mindful of the personal implications and personal risk you assume during this trying time,” Ruhe cautioned. “Right after 9/11, what I did in hindsight was so crazy. I was writing checks to cover payroll from my home equity line of credit. When you put yourself at so much risk and strain, you lose your capacity to make sound decisions. Mentors and advisors, I can’t stress enough, are a resource for you during these trying times.”
“When it comes to your team, that’s probably the hardest part as a founder,” said Smith. “It’s very challenging because you’re struggling and you don’t want to cause alarm. But it’s important to be transparent and take into account the mental health aspect of it. This is a really trying time, and it’s important to keep a sense of perspective and take the small wins when you can.”
For those seeking mentorship and guidance during this time, Roselli was quick to encourage event-goers to participate in the Packard Place fellowship program.
Virtual Meetings the New Trend for Charlotte’s Startup Community
On the heels of the first virtual Public House’s success, we’ll likely expect to see many other programs follow the same strategy to foster connection and innovation. Participants were eager to share their enthusiasm for attending future virtual events, including Packard Place’s Ask Me Anything with Thought Leaders, educational presentations, and training workshops. PitchBreakfast is already slated to enter the virtual realm for April’s meeting. In this time of chaos, one thing is certain: Nothing can stop Charlotte’s startup community from banding together and helping each other overcome entrepreneurial challenges.
*If you missed last night’s event or had trouble logging in, don’t worry! Packard Place recorded the event, which you can view now on their YouTube channel.
