When the pandemic started, the conventional wisdom was that the capital markets would take a beating, including the venture capital market for startup capital.

The second quarter of 2020 is now behind us and we will see the data on it soon. I suspect what we will see is a very active venture capital market, quite the opposite of what was initially expected.

There are a number of reasons that I think we will see that.

First, venture capital firms raise funds and it is our job to put them to work. If we see interesting opportunities, it is our job to invest in them. We are not paid to hoard the cash.

Second, the stock market for tech companies has been on a tear in the last three months and that weighs on the minds of investors. A bullish stock market leads to a bullish venture capital market.

Third, the pandemic showed that software based businesses, e-commerce,…

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