- 83,5% of those questioned said that the pandemic had an impact on their investment plans.
- More than half of surveyed will fund the same stages as planned before COVID-19. The lockdown affected industries, such as healthcare, remote work solutions, productivity software, and logistics, to see investor growing interest.
- Most respondents advised startups to lower costs and concentrate on consumers.
What should be done?Now is the time to keep the accentuate the consumer, customer needs, and demands. Products should whirl around them, so beware of making any changes or pivots, which can negatively impact the user experience. Startups should meet consumer needs and gaps in the market, so stay on that track and measure KPIs, which present consumer satisfaction in the product or service. In any economic recession, non-essential goods or services are often the first to be dismissed by consumers. Now it is more critical than ever for venture-funded startups to become a substantial business and build on revenue. Gartner predicts global IT spending to decline by 8% in 2020 due to the impact of COVID-19. As the virus mercilessly spreads across Europe, investors hurried to close deals that were already at an advanced stage. Some M&A advisers have announced that up to 90.0% of their mandates have been paused. Deals in early stages will probably be put on hold or wholly canceled as investors due to force majeure events. While deals will still happen out of the need for those who move into the distraught territory, a new normal is believed to be formed, with investors’ assumptions and ambitions being substantially contrasting.
Where are we heading?Our research shows that top COVID-19 startup investment directions are in:
- Finance services (fintech). Six startups raised more than $5,5 million in sum, e.g., Primer – is a MI company that uses machine learning and natural language processing to automate the analysis of massive datasets.
- Biotechnology Startups (MOMA Therapeutics, ROME Therapeutics, Pulmobiotics, Genespire) raised more than $155,5 million. It is quite surprising considering that it takes a few years of intensive cash-burning before a biotech company’s first product reaches the market.
- Gaming startups (Rally Cry, Pragma, Skibre, NAG Studios) raised $5,5 million.
- Video Streaming startups raised $22 million (the best one is BancroftX Media)
- jobs in one industry (such as telecommunications or healthcare)
- one job type (data analyst or web designer)
- one candidate type (white-collar workers, remote engineers)
- one demographic (military veterans or stay-at-home moms).
Daria Marchan, Content Marketing Specialist at LAB325 . LAB325 – full cycle Product Engineering Agency, we’ll bring your ideal product to life, achieve future growth, and keep up relevance in your market. We love Products, and we are pleased to assist them through their business lifecycle. Our Product Lab uses a full cycle approach: from exploration and hypothesizing to design, from the development to testing and implementation. LAB325 develops innovative technologies for customers worldwide.