• Unlisted

The coronavirus crisis – a difficult time to be launching a business?

Updated: Mar 21, 2020

It’s probably never an easy time to start a small business, what with the pressures of finding your market, getting the right talent and proving your capabilities to investors, stakeholders and supporters. Well, that difficulty has probably risen exponentially over the past few weeks as the coronavirus crisis deepens.

Of course at Unlisted our focus and thoughts are with those suffering medically and at increased risk from this illness, and that issue by faraway dwarfs anything else in relation to it. But it is the duty of those of us with an economic input into society to ensure that economic progress continues, and is ready to expand again once the crisis abates. Not only that, we should be examining what we can do to create efficiencies during the crisis, so that our product offering of accurate, real-time, cost-effective and integrated private company valuations can help promote and maintain the economic activity that underpins the wealth and health of our society.

However, with all these caveats about the difficulties in mind it has occurred to us that the uses and reasons for building Unlisted are even more important now, given the stresses in the finance industry which we have all witnessed over the past few weeks.

Firstly, there’s no doubt that stock prices have been roiled, with prices as we write now close to eight-year lows. We expect much more of this in the weeks and months to come with volatility increasing all the time. However, we expect the influx of information that we will receive from our analysis at present may actually show that the enhanced value of applying our patent-pending machine-learning algorithm to private company valuations in times such as these. In other words we believe the usefulness of our pioneering technology may increase as market volatility widens.

A concurrent and important aspect of this is that with stock prices varying so widely over short timeframes the value of a utility that links privately held companies to the wider market is more important than ever. The factors that may see a decline in a listed pharmaceutical company will be close to the same factors that will affect the value of an unlisted pharmaceutical company – our model therefore is highly pertinent for the market at present.

Another key issue is how we can help provide information on a market that might be overlooked in times such as this. There’s no doubt that investors are finding it difficult to find or ascertain value in stocks at present, and the operation to cover losses in stocks has caused the unwinding of some positions in normally safer assets such as bonds and gold. This in turn has caused declines in these asset classes also. All the more important therefore that investors have access to alternative investments that can provide diversification to their wider portfolio at present.

Finally, and importantly, many of our potential clients will be struggling to determine where to find potential, with restrictions on social contact and visits likely to last for weeks or months. A utility such as Unlisted lets you do all of this from the comfort of your own desk, or even in your own home office.

In short, it’s incumbent on us all to participate and keep the economy ticking over through this difficult time, as the wealth of society is what underpins our efforts to tackle this devastating disease. We believe Unlisted helps markets deal with the challenges faced, and with that in mind, we are working hard to develop our product and deliver it to market in the nearest future possible.