Praxis - IVCA - Investor Sentiment Survey April 2020

Recommendations

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Recommendation to portfolio companiesMajority (94%) of investors recommend to cutting down cost and 47% activelyrecommend to manage people and 44% recommend to grow revenueQ. Currently, what should be the top-3 priorities for the senior management of your portfolio companies?Recommendation to senior management (% of Investors)100%94%80%60%40%47%44%20%17%8%0%Cut down cost and conservecashManage people (Hiring,Training)Grow revenue in the currentline of businessActively explore strategic M&AExplore the new line ofbusinessSources: Praxis-IVCA Investor Sentiment Survey (N = 50), Praxis analysis© Praxis Global Alliance |10
Recommendation to portfolio companiesRecommendations to the senior management of portfolio companies“Conserve cash and defer capex unlesscritical”“Hard look at marketing expenses. Thatbeing said, cut fat not muscle”Cash flow & Unit economics“Cut cost, conserve cash - path to 18-24months”“Conserve cash. The pain may be long”“Institute pay-cuts across the board,with the highest amongst seniormanagement”“Focus on product and improve uniteconomics”“Redraw business plan. Go slow on newinitiatives”“Companies with strong market power,cash balance - be prepared for rebound”Fundraising & Growth“Seek alternate sources of funding likefactoring, bills discounting, etc”“Prepare yourself well for a fundraise sothat you can bolt out of the door once itopens”“Manage employee morale andinstitutionalize work from home evenbeyond the 21-day period”“Extend your runway - avoid layoff asfar as possible”Employees“Get your back office optimized” “Take care of employees”Sources: Praxis-IVCA Investor Sentiment Survey (N = 50), Praxis analysis© Praxis Global Alliance |11
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Praxis - IVCA - Investor Sentiment Survey April 2020

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