The future of startups with covid -19…Let’s just say things look different now. Life has become more difficult in these past two years, due to the coronavirus. Its presence has been felt in all aspects of life. From our daily tasks and activities to traveling and work, and managing business. In that line of thinking, today we are going to look closely at what people think will be the future of startups with covid-19.
Unfortunately, many people lost their jobs, as entire companies shut down. The effects of the coronavirus were felt the same in big and small companies and businesses. However, people need to work, in order to get money and survive. This means that even in these difficult times we need to think about a career. It may be best to look into applying at smaller businesses, due to the fact that they don’t need a lot of people to function. But let’s see what people think on the subject.
In order to give you a more detailed insight on the matter, we did our research with the help of Quora. It is one of the most popular forums in the world and many people share their thoughts there. What did the people have to say on the subject?
V.Yadav said: “Start-ups in India is likely to take a hit, as fears months that the impact of Covid-19 virus outbreak could stretch beyond a few months.
Domestic Startups that were in talks with Asian investors, primarily China-based ones, have put them on hold as a direct impact of the pandemic. This could be the begging of something that could go into several quarters.
Several late-stage investors are also pre-occupied assessing the impact of Covid-19 and elevated financial market volatility on their portfolios and when that happens, new investment decisions tend to take a backseat.
Another point of worry is how a huge number of early-stage start-ups that received funds in the past year would raise more capital.
It is unclear how many start-ups are actively scouting for cash, but 682 start-ups raised less than $5 million, 165 firms picked between $5 and $15 million and 103 companies mopped up $15-$50 million in 2019.
Sequoia capital also sent out an advisory to companies in its global portfolio on the pandemic, warning them of a global economic slowdown that may take several quarters”
A writer, Mr. W.McClure said: “very limited term sheets will go out if any.
S. Mitra, who owns a startup business shared in the forum: “you need to look at this question in a few different ways:
Heavily funded startups with credible business models and technologies solving real problems are doing fine, and they will continue to do fine. Their investors will make sure they get through this period, if necessary, by providing insider rounds. Besides, there are funds that are looking to invest in such startups, so their options are many. Valuations may be down, but these startups will survive just fine.
Heavily funded startups that have high burn rates but not sufficient traction are going to face great difficulty. They will run out or runway. They won’t be able to raise additional rounds. This is an at-risk category.
Bootstrapped startups who have found product-market fit and have the runway to carry on may be fine, even if sales slow down, and deals take longer to close. Some may even be able to find exits. Some will also succeed in raising funding, albeit at lower valuations than if times were normal. The ones who have no runway left will be in trouble.
If you’re running a startup and trying to assess your options, the 1Mby1M Free Public Roundtables | 1m1m – One Million by One Million are all online, and over 150,000 entrepreneurs have attended them from all over the world. You are welcome to come to discuss your situation with me at one of the sessions. They are held every week, normally on Thursday morning at 8 am Pacific Time.”
If we want to make a startup business right now, it’s going to be a bit more difficult. You have to take into consideration a lot of different factors. Of course just because it is difficult, doesn’t mean you have to give up. If we never risk, we will never learn or win.
Autor: Mihaela Ahchieva