Sequoia Capital has invested in companies such as Google, Apple, WhatsApp, PayPal and Instagram, among others. The money invested in unicorns has led to historic records in their numbers thanks to funding rounds. But in addition to investing in large companies, it also does so in the earliest stages of startups. As a result of the current Covid-19 situation, the company seeks to raise around 7 billion to invest in startups from the United States and Asia to help the economy of these countries. The idea is to take advantage of the momentum that some technology companies are receiving at a time when governments have imposed quarantine on their countries to stop the spread of the virus, leading confined citizens to download more videos and mobile games, he explains. Financial Diary.Recently, the company warned the startups in its portfolio to prepare for an economic recession. Several of the company's investments were scheduled to go public this year.
More figures from the video game industry
It is true that during the time of confinement we are continuously connected to the internet, whether for teleworking, video calling with friends or family, mobile applications, video games, among others.WCCF Tech has compiled statements from analysts around the world to explain how the Covid-19 crisis will affect the video game sector, which explained that the record had been broken with more than 20 million players online. In addition, Redeye analysts have concluded that due to the lockdown, video game consumption will increase. In the long term, we can also see the increase in users who previously did not play games and that, due to isolation, can trigger long-term use and consumption. However, this notable increase contrasts, on the other hand, with the alarms that have been raised in the sector, which in Spain warns that this situation involves losses close to fifty million euros per month. The virus is good for Internet gaming, but bad for physical sales. Geographically, Italy is the European country where quarantine was implemented before, and this also reflects how the lockdown has boosted Internet traffic, which has risen by more than 70%. To a large extent, this increase has been generated by online multiplayer video games such as Fortnite or League of Legends, video games that also have numerous followers in Spain, where Internet use has also greatly increased. In this sense, if we look at previous figures, in 2018 the video game sector had a turnover of 1,530 million euros in Spain -more than double that of music and cinema combined-. But we must not forget that the physical video game market is still ahead of online consumption, 850 million compared to 680, so we understand the bipolarity that this industry is suffering as a result of the Coronavirus, online growth versus physical losses. So we ask ourselves, will this crisis serve to make the 100% digital leap in this industry without having to rely so much on physical sales?
