Ned Desmond, an experienced leader in the publishing world with over six years at Time Inc. and more than eight years as chief operating officer of TechCrunch and Engadget, has recently become a senior operating partner at the investment firm SOSV.

This appears to be a mutually beneficial arrangement for both parties involved.

SOSV, currently overseeing a $277 million primary fund in addition to several smaller investment vehicles, has gained recognition for its successful accelerator programs. These include Hax, which concentrates on early-stage hardware companies, and IndieBio, SOSV’s accelerator dedicated to life sciences ventures.

The firm, established in 1995 by serial entrepreneur Sean O’Sullivan, has provided funding to approximately 1,000 startups and recently recruited Desmond to assist these companies in networking, promoting their achievements, and securing additional investment.

This type of work aligns well with Desmond’s previous experience, particularly his significant role in organizing TechCrunch’s global events and its prominent Battlefield startup competitions, which showcase numerous emerging companies each year.

Following his departure from TechCrunch last summer in pursuit of new opportunities and a period of rest, Desmond was contacted by O’Sullivan, who invited him to join SOSV to support its marketing and sales initiatives, as well as to mentor and connect its portfolio companies.

O’Sullivan believes that SOSV could greatly benefit from Desmond’s expertise, especially in the current climate.

SOSV has a track record of successful investments. They were an initial investor in Jump Bikes, which was acquired by Uber in 2018 for an undisclosed sum. They also invested early in FormLabs, a 3D printing company now valued at over $1 billion as of its 2018 funding round. Furthermore, they provided early funding to GetAround, a peer-to-peer car-sharing service that experienced challenges during the pandemic but has since recovered and secured $140 million in Series E funding in October, bringing its total funding to $600 million.

Additionally, SOSV is an investor in Memphis Meats, a company producing lab-grown meat, which raised $161 million in new funding earlier this year, led by SoftBank.

However, SOSV faces similar challenges as many early-stage investment firms, working with numerous new teams that have been negatively impacted by the pandemic. According to Crunchbase data, seed funding decreased by 32% year-over-year and 11% quarter-over-quarter in the third quarter.

While well-established companies are generally not facing fundraising difficulties—and are often receiving excessive interest from investors—newer, less-proven teams with limited networks are finding it more challenging to obtain seed and Series A funding.

“The market is exceptionally competitive,” states O’Sullivan. “Angel investors have largely withdrawn, and seed investment has declined significantly,” with the exception of the life sciences sector, particularly in the United States, where challenges remain for all companies due to slower progress without in-person interaction.

Regarding the increased use of video conferencing and VCs’ claims of having more time to meet with startups, O’Sullivan jokingly suggests that there is a degree of self-promotion within the industry. “Everyone consistently reports being ‘doing well,’” he observes, “But I approach things with honesty,” and emphasizes that “there’s no substitute for meeting with a company in person and collaborating directly. Remote interactions simply take more time.”