I hope you’re safe and doing well. As I’m sure you’re aware, the spread of COVID-19 across the globe has had an unprecedented impact on people, travel, businesses, and the economy. We’ve also seen the events affect startups at every level, from fundraising, to marketing, to hiring.
While we’ve been in communication with our students, we thought it was important we share with you, our investors, how COVID-19 is affecting Avenify and what we’re doing to ensure the safety of our team and company.
First and foremost, our team has taken steps to protect ourselves and prevent the spread of the virus by working from home and practicing responsible social distancing. Timo and I are both healthy and doing well.
As for Avenify, there are a few areas I want to touch on: 1) Runway and fundraising, 2) Capital markets, 3) Effect on student placement and payback.
Runway and fundraising
Since the beginning, Timo and I have made capital efficiency a priority. We’ve gotten this far with less than $150,000 in funding, and thanks to all your support for our Republic campaign thus far, we have over 12 months of runway remaining.
We are continuing to wrap up conversations with potential lead investors for our seed round, though based on advice from our investors and advisors, and given our financial position, we have decided to wind down the process and resume conversations later this year.
In the meantime, we’ve secured a couple angel commitments we’re working on closing as soon as possible; these checks will extend our runway, grow our marketing budget, and help fund more students this fall.
Given our vertical-specific approach and focus on nursing, we remain optimistic in our ability to raise capital, acquire and fund students, and generate positive and healthy returns for our investors and capital markets partners.
Earlier this year, we began conversations with multiple credit funds, debt investors, and banks, to help us scale beyond peer-to-peer investing. We’re currently in negotiations to fund our first batch of debt-financed ISAs, and we expect to have more news to share within the coming months.
Student demand, placement, and payment expectations
Historically, nursing has been resistant to economic downturns — its strongest periods of employment have been during recessions. We expect our students’ abilities to find jobs, get hired, and make payments will not be affected. Already, we’re seeing students get placed into jobs with salaries equal to or above their projections.
At this time, all students will continue making full payments on schedule. And as always, if our students are unemployed, they won’t have to pay a cent.
Our hearts go out to those who have been affected, and we wish all well. We also want to thank those who are putting their lives on the line — nurses, doctors, first responders, volunteers, and service workers — to make the world a better place. We’re in this together.
Please remember to take care of each other, wash your hands, and follow local, state, and federal recommendations.
— Justin & Timo