Startups are part of the Post COVID economic recovery but getting their next round of capital could be more complicated now – even from existing investors.
Many investors are quietly pushing the pause button – despite what they say publicly.
Some people on furlough are using their newfound free time to work through and launch startups and begin their own self employed life. Exciting times for them!
Some existing startups were totally dependent on markets and conditions in the pre-COVID world and the markets they were there to serve or disrupt have been disrupted, damaged or destroyed by COVID.
What do they do? Stick with the startup they have? Refocus it for quarantine life, remodel it for post quarantine life?
Some of those #startup #founders have invested their own cash and months or years of time so they have skin in the game too – even if they are still in the development phase.
They are lucky that they generally don’t have contracted fixed costs like office space but cloud storage costs money and they will still have a #burnrate and have key people they need to retain who are essential to the current or future version of their startup.
Spare a thought for startups as well as SMEs. Both are needed.
How can I help your startup?
[thrive_link color=’blue’ link=’https://peterbotting.co.uk/coaching-for-startups-capital/’ target=’_self’ size=’medium’ align=’aligncenter’]Startup Coaching[/thrive_link]