Praxis - IVCA - Investor Sentiment Survey April 2020

Recommendation to portfolio companies
Majority (~67%) of investors are suggesting their portfolio companies to cut
marketing spend, reduce SG&A cost (61%), pay cut for senior management (54%)
Q. What measures are you suggesting to your portfolio companies to deal with the crisis?
Crisis response measures for portfolio companies (% of Investors)
3% 3%
3%
6% 3%
3%
9%
14%
9%
8%
11%
3%
17%
17% 20%
17%
25%
22%
20%
17%
17%
17%
9% 11%
6% 6%
24% 22%
21% 22%
6% 9%
26%
14%
14% 31%
17% 16%
16%
19%
16%
22%
6% 9%
29%
37%
18%
67%
61% 57% 54% 51% 47%
26%
20%
17%
28%
32%
26%
Trim down
discretionary
marketing
spend
Reduce
SG&A cost
Trim down
spend on
third party
services
Pay cut for
senior
management
/ founders
Cutback
bonus
across
organization
Freeze
spending on
new product
/
geographies
41% 39%
Withhold
bonus
across
organization
Cutback in
number of
appraisals /
appraisal
amount
29% 26% 25% 25%
Downsize /
Rightsize
senior
management
Pay cut
across
organization
Seek debt /
venture debt
Seek
additional
equity
15%
Downsize /
Rightsize
junior
employees
20%
9%
Merge with a
bigger player
Strongly recommending Moderately recommending Should do if situation gets worse Should not take this step Don't know / Can't say
Sources: Praxis-IVCA Investor Sentiment Survey (N = 50), Praxis analysis
© Praxis Global Alliance |
8