Startup Funding in a Post COVID-19 World
Every single person has been affected by the COVID-19 pandemic. For the entrepreneurs out there, business has been far from usual, and right now, the number one goal for startups is simply to survive.
The National Venture Capital Association noted in a recent report, “Fasten your seatbelts” … “It’s going to be a bumpy ride.” The NVCA noted that about 300 startups have laid off around 30,000 employees nationwide since the onset of the pandemic in March. “This is likely just the tip of the iceberg for what will be tough times for startups over the coming months.”
So, what are Venture Capitalists doing right now? It’s likely many are reappraising their current portfolios rather than investing in new deals. However, now more than ever, some startups will be in the perfect spot to access support and funding.
For the startups that performed well during quarantine, there is a likelihood that funding opportunities will be favorable. As we all know, the pandemic hit nearly all industries but not every industry was negatively affected. Take food delivery apps, Amazon, or cannabis companies—all of which have experienced record highs for revenue and growth. And, it’s important to note, that these industries didn’t thrive simply because their business model was “pandemic-safe.” In many cases, these industries amped up their customer service, enhanced their investors’ perceptions, and shifted their culture’s morale for the better.
Although times have been downright challenging, startups have the opportunity to revamp and become more ‘fundable.’ If your current business model is not pandemic-friendly, try and figure out a way to engage your customer base in a virtual or socially distanced way.
Startups can survive and thrive, but we all must pivot to new norms and adopt revamped strategies.
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Derek Rundell, is a successful business leader, operator, and serial entrepreneur. Derek has founded, managed and sold businesses in the technology, media and finance industries. He sits on several boards and serves as an advisor/investor to numerous established businesses and startups. Startups are Derek’s real passion, and in addition to building his own portfolio of technology, media and financial ventures, he invests in and mentors startups and entrepreneurs. He is passionate about sharing his knowledge and helping other businesses succeed.