COVID-19 pandemic has severely impacted countries worldwide, raising concerns for organizations over long-term economic stability. Recently, Head of America’s leading venture capital and private equity firm, Vista Equity Partners, shed light on this matter in a recent press meet where he discussed the necessary steps needed to be taken by the U.S to help minority-owned businesses recuperate from the financial loss caused by the COVID-19 pandemic.
Reportedly, days after investing nearly $1.5 billion into Indian telecommunications company, Reliance Jio, Robert F. Smith, Chairman, Founder and CEO of Vestas Equity Partners, turned his focus towards the U.S. and its mounting economic crisis that is apparently ruining the position of financial institutions and minority businesses amidst the COVID-19 pandemic.
According to Smith, the novel virus is like a pandemic on top of a number of epidemics. As a result, the country’s next round of stimulus should focus on supporting small businesses that remain to be underserved by conventional financial institutions. Therefore, new financial technology services and software could play a huge role in revitalizing these businesses.
The government should come up with some lasting, real, and scalable solutions to help communities that are hit hard by this slowdown, as well as those probably taking a long time to recover, added Smith.
There is a serious need for a new wave of technology systems to strengthen transparency and facilitate operations between these urban-rural communities that do not have the option to avail services from large banking institutions. Besides, an infusion of cash into community development financial institutions could significantly enhance the prospects for these communities.
In other news, Vista Equity Partners made headlines when it joined the social conglomerate Facebook in owning stakes in Reliance Jio Platforms. The investment gave the venture capital firm a 2.32% stake in Jio Platforms, valuing India’s topmost telecom operator at $65 billion.