As the world teeters on the brink of a dystopian nightmare triggered by the novel coronavirus pandemic, it is amply clear that startups, too, are now operating in a new normal. While most aspects of how things will pan out in this new world are still far from clear, the one piece of advice that seems to have become de jure is that, above all else, startups need to conserve cash. From blue-chip investors like Sequoia down to every seed fund and angel group, there is consensus consensus The Ken Covid-19’s impact on startups: Black Swan or something else?
The Covid-19 barricade on startup runways
The ‘cash is king’ credo has never been more applicable to startups than in these difficult times. As startups plan their runways and funding positions, will venture capitalists have to play doctors and choose who lives and who dies?
Angel investors and venture capitalists are not considering new investments, but for entirely different reasons
There is a strong belief that seed-stage investing will pick up soon, but funding terms are not going to be generous
Venture capitalists fear there is going to be a severe funding crunch at the Series B stage and beyond
Enterprise-focused startups are now just as vulnerable as their consumer-focused brethren