We have taken part of a Global Survey created by the Startup Genome Project on the impact of the recent crisis on the startup ecosystem and are sharing the results here:
42 percent of startups globally are threatened in what we call “red zone”: they have 3 months or fewer of runway. This means that if their expenses and revenues remain as they are now and they do not raise additional capital, 4 out of every 10 startups will die in the next 3 months. This number is up from 31 percent in December 2019! (This is only an average, some regions and countries will fear worst than the listed numbers.)
The results are very grim and the worldwide impact is going to be very big. Please don’t forget that innovation and new technology implementation are spurred by startups and not established companies. Startups and young firms are also the main net job creators in the economy, This said, it is now a sad fact that the world is going towards an age where innovations and new ideas will be minimized for some times or until the funding process goes back to normal. A sad news for all.
Results link: https://lnkd.in/en8rUTD