COVID-19 is impacting the whole world - also the startup- and SME-sector (which impacts also many people and families - their livelihood).
A founder usually lives from it's savings (from an earlier job) or gets supported from his family. This is why a startup has only a short period of time to generate revenue or to find external funding.
COVID-19 does not only make the environment more difficult, but also to find funding has become harder. Investors have now to focus on their existing investments. Some startups have also to fight about valuation - as investors currently getting shares from large companies for a very low price...
We are seeing startups and innovative ideas dying - and expect much more in the next months.
Someone told me lately "if they are not strong enough, it is better they die now...". I think this is too "black / white". I am asking myself, what would have happened with
An other person said "...but they can ask for money from the government...". I do agree, that there are companies, which can do this - and this is great - but still today, there are so many rules you have to fulfill and many startups do not fulfill the conditions (each country has its different rules - just one sample "show that you had revenue in previous year" - how many startups are able to show this...?)
The question is also "When will the outbreak end and life goes back to normal?". Some aspects will probably never go back completely.
Based on the many conversations we had in the past months, we see the increasing need for digitalization in the startup market (support, enable interaction and transparency). But also, that IT will never replace personal, physical, human interaction - IT can enable and support, but not replace. Digitalization requires humanity...
We hope 2021 ends COVID-19... the sooner, the better..