IMPACT AND OPPORTUNITIES OF COVID-19 FOR STARTUPS
The Covid-19 crisis will be a huge impact on the global economic. Some business has come to standstill while others have to take off. Many have talked about new trends like remote investing or remote work. But for startups, the impact has not been uniform and it´s important to have a better understanding of the impact and dig deeper about it.
In this order, the French startup Campus Station F who gathers a whole entrepreneurial ecosystem under one roof, conducted a study on the Impact and Opportunities of Covid-19 for startups, in partnership with more than 120 ventures capital funds from all around the globe.
The study focused the analysis on five key countries: France, United Kingdom, United States, Germany and Israel, and five topics: business impact, product, employment, funding and work habits.
“The main lesson from this survey is the immense agility that startups were able to demonstrate through the crisis. It´s a solid ecosystem that´s made changes, but really hasn’t been shaken up to the point of in-depth soul-searching” says Roxanne Varza, Station F´s director.
Philippe Botteri, Accel Ventures partner says the crisis is an opportunity to reassess their culture, their working processes and their cost base and most of them will emerge much stronger.
80% of startups had some sort of pivot. The common actions involved changing the go-to market strategy.
24% of startups polled used some form of temporary unemployment, while about 17% implement firings since the beginning of coronavirus. Pierre-François Marteau, SpeedInvest partner says “Overall we have seen a massive impact on the ecosystem, with many companies set back in their development for years. Some of that will be (and already is) recovered over the next months and years, but for some companies it will take much longer or no happen at all.”
Funding & Cash
Fundraising rounds were delayed for 40% of startups during the crisis. The startups are trying to tap investors for money now.
Companies are transforming their habits and making adaptations after Covid-19.