Only 30% of startups able to operate as per their plans; 75% struggling with sales and market challenges
80% of startups are optimistic of prospects; 36% of startups found new opportunities
Hyderabad, India, May 18, 2020: As the global startup ecosystem gears up to cope with the COVID-19 pandemic, the Indian ecosystem is also very apprehensive. With rampant speculation on consumer behavior and market reactions, there was a general sense of foreboding about the adverse effects and diminishing investments in startups.
In order to identify and present a comprehensive understanding of the impact of COVID-19 on deep tech startups, CIE-IIITH conducted an online survey to assess and understand how startups are coping, and what assistance they require. The survey was developed around different aspects encompassing operations-as-usual, financial status, areas of adverse impact, lateral activities adopted, survival actions, support from CIE-IIITH’s initiatives during COVID-19, the scope for further support from the ecosystem and prospects in arriving months.
According to the survey report, the operations are not usually as nearly 70% of startups are able to do lesser than earlier planned. Only 30% of the startups are able to run with their routine planned strategies. Short-term cash flow seems to be the biggest worry for startups, medium-term concerns are smaller. Most startups seem to be struggling with revenue-generating activities in sales, marketing, and business development. The help sought also is towards connecting with corporates, clients, and channels. The most surprising facet was the future outlook. 80% were optimistic about the future and 30% said they see a better prospect than they did pre-lockdown.
Commenting on the report, Prof Ramesh Loganathan, Chief Operating Officer of CIE-IIITH said, “The positive outlook towards the future that many startups have is extremely encouraging. We are very glad that through our ResilienceUnlocked series of activities during the lockdown, CIE-IIITH has been able to help some. Specifically, towards accelerating COVID-19 related innovations, connecting startups with markets, investor pitches and startup peer experiences sharing”.
Download the report from here: https://bit.ly/2LEebZK
