Expara Ventures launched a programme this week for startups around the world with the goal of finding solutions to pain points caused by the ongoing COVID-19 pandemic.
Offering up to 30 startups $50,000 apiece to fund development of services and products relevant to the ongoing coronavirus pandemic, the three-month long accelerator programme, named Expara VirTech, will include “intensive mentoring”, concluding with an online demonstration of that service or product.
“The focus is using innovation to solve the social and economic problems that have been both revealed and exacerbated by the [COVID-19] pandemic,” Douglas Abrams (pictured), founder and CEO, Expara Ventures told FinanceAsia.
Medical companies focused on developing a vaccine are not a focus of this programme, although Abrams hasn’t ruled it out completely.
After conceiving the initial idea two weeks ago, Abrams and the Expara team hit the ground running. At the moment, capital for the accelerator programme is being diverted from Expara’s larger accelerator fund. But Abrams is now in talks with other potential investors to drum up additional capital.
“If we could offer investments of up $250,000 or a little more, that would be great because some of the companies will be ready for that stage of investment by the end of the programme,” he said.
Startups from around the world are invited to apply. In keeping with the social-distancing protocols in effect, all mentoring sessions in the programme will be via computer. Since launching the programme on March 24, several Thai and Singaporean venture capital groups have expressed interest, according to the Expara director, alongside multiple multinationals with offices in Singapore.
“We want anyone who shares our vision of trying to help to solve the problems that are being generated by this pandemic,” Abrams said. “So many sectors are already affected and it’s just going to get worse for the next couple months.”
More than 20,000 people have been killed by the pandemic around the world as of March 26, according to John Hopkins University data and governments around the world are taking unprecedented emergency measures to counter the fall-out as economies grind to a halt.
Getting on the offensive
During an emergency of this scale there is no ‘business as usual’ and innovative solutions are required. Both the public and private sector across the globe are looking to find ways to support companies who may be able to offer something to fight the pandemic.
Institutions such as the European Commission, for example, offered to fast track investment and funding for startups and small businesses who are developing technology that can directly combat COVID-19. Eur164 million ($178 million) has been made available for research and development into the commercialisation of high risk, high impact technologies.
Expara Ventures claims its initiative is the first accelerator programme focused on the COVID-19 threat. “I started thinking, ‘what can we do to fight back and not just play defence’,” Abrams said.
The venture capital firm has twin motivations driving the project: altruism and the hunt for profit. “I do see a lot of opportunity for new investments,” Abrams said.
“This situation is creating enormous human suffering and social disruption, which means there’s potential for companies to create very successful products and services to make that better,” he said.
Startups taking part are expected to have little external funding to date. “It's very rare that we get companies into our accelerator programmes that have gotten more than one round of funding,” Abrams said.
Overlooked or unneeded until now, the services provided by these startups may now be crucial as billions around the world transition to self-quarantining and social distancing measures.
Launched in 2003, Expara Ventures primarily focuses on Southeast Asia. Not including Expara VirTech, it presently runs six portfolios.
