COVID-19 Impacting Start-Ups, Where Many Now Have Low Cash Reserves

Siddharth Venkataramakrishnan reported this week at The Financial Times Online that, “A survey of 200 UK start-ups in fields ranging from advertising, education, fintech and software has shown the precariousness of young companies in the face of the Covid-19 pandemic.

“The most striking statistic in the survey by London venture capital firm LocalGlobe was that two-fifths of respondents estimated that their current runway period is a year or less.

“Silicon Valley-based research project Startup Genome estimated that around the world, 41 per cent of start-ups have a cash runway of just three months.”

The FT article noted that, “Fundraising has also been severely curtailed, with 40 per cent of start-ups saying they had delayed plans to pitch for investment.”

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