As coronavirus damage spreads, talks turn to bailouts

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The fund will focus on the traditional areas of interest of the NEA, including start-ups in the health technology, fintech and enterprise sectors. He plans to invest a lot in start-ups, where he tends to get his biggest returns, although Tony Florence, a general partner, added he has the firepower to “double down” on them. promising older companies in the portfolio that need capital to grow. Neither partner said they were worried about finding enough potential investments, a problem that crippled Sequoia.

The firm is not too worried about the coronavirus … but tells start-ups to look after their employees and make sure companies have enough cash flow to overcome a tough fundraising environment. “When you don’t know where your money is coming from, you had better be careful about the money you have,” Mr. Sandell said.

He had already told his start-ups to be more parsimonious, avoiding the kind of gratuitous spending that led to WeWork’s meteoric rise and fall. Or, as Mr. Sandell said, avoid taking $ 300 million from SoftBank’s Vision Fund, increase market share by a few percentage points, and “become profitable when your grandchildren grow up.”

Last year, Occidental had the wind in its sails after making a deal to buy fellow oil producer Anadarko for $ 38 billion, beating Chevron and fending off Carl Icahn. This year, everything fell apart.

Oxy will reduce its dividend by 86%, at 11 cents. (This is one of the biggest such cuts in years.) The company also plans to cut capital spending this year to as little as $ 3.5 billion, from an expected high of 5.4. billions of dollars.

Its market value has dropped to $ 12.8 billion, well below the $ 42 billion when the deal with Anadarko was struck in August. And the value of Oxy’s debt has also fallen: a long-term bond issued last year is now trading at 69 cents to the dollar.

The culprit: oil prices. Oxy is just one of many U.S. shale producers who have been hit hard by a sharp drop in crude prices as the coronavirus outbreak and a price war between Saudi Arabia and Russia wreak havoc. Saudi oil giant Aramco said this morning it plans to produce one million more barrels per day, an effort aimed in part at crushing American shale rivals.



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