41% of startups may close due to coronavirus – poll
At the same time, 28% of companies did not change their agreements with investors and continued to function as before.
41% of startups around the world will be forced to close in 3 months if they do not find new investments or increase their profitability. This is evidenced by a survey conducted by Startup Genome.
The survey involved more than 1000 employees and startup founders from 50 countries.
While every fourth startup is in the so-called “red zone”, 15% have at their disposal financial resources that will allow them to hold out for more than a year. In 13%, the deadline will come before the end of the year.
28% of companies did not change their agreements with investors and continued to function as before.
74% of companies were forced to cut teams. Only 4% retained 100% of employees.
95% of all companies cut their wages. Revenue is also declining overall – three out of four startups are engaged in areas that COVID-19 has influenced more strongly: tourism, entertainment, sales and transport.
Source: ua-news.liga.net
