COVID-19 is starving tech startups

A new survey of the tech startup sector across the globe shows that a high percentage of the industry is poised to starve and go out of business over the coming months as the capital and revenues that sustain them dry up.

For the 26% of tech startups that have seen revenues rise since the pandemic, consumer-oriented firms are three times more likely to see growth due to the pandemic than enterprise-focused startups. Why? Large enterprises are slashing expenses quickly, while locked-down consumers are shifting their consumption patterns toward digital products and services, which benefits tech companies more than other businesses …

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post tenebras lux
For not in my bow do I trust, nor can my sword save me.


Thanks for posting.

The funding landscape has certainly changed and tech startups just don’t have any many levers to pull from an expense management standpoint to offset short-term customer buying / investment pull-back. So for those who are experiencing cash burn and shorter runways than months ago it may mean accepting $s at a humbling valuation because the money from VCs is still plentiful.