As the COVID-19 pandemic disrupts markets and businesses globally, economic activity has come to a standstill in India.The International Monetary Fund (IMF) is now calling the lockdown as the worst recession since the great depression and far worse than the global financial crisis of 2008.
Earlier this week, Japanese technology company SoftBank warned that it is staring at its biggest ever fiscal loss as its poster boy the $100-billion Vision Fund is set to lose $16.5 billion owing to write downs in startups and tech investments.
Most business leaders CNBC-TV18 spoke to believe that while this strategy of generous cash dole outs to startups worked for a while, it is now clear that growth at any cost can't be the mantra, going forward, for investors and startups alike.
Much like during the dotcom bust of the early 2000s and the financial crisis in the mid-2008, investment firms are now focusing their energies in protecting portfolio companies rather than adding new ones in this period of crisis.
Touted as Black Swan of 2020 by Sequoia, investors are now advising startups to prepare for the worst, cut spending and even rethink about business model to keep their heads above water until the economies are out of this COVID-19 crisis.
CNBC-TV18's Shereen Bhan spoke to Avnish Bajaj, founder and MD of Matrix India, Sudhir Sethi, founder and chairman of Chiratae Ventures India and Kannan Sitaram, venture partner at Fireside Ventures to discuss the survival strategies and the future of the Indian startup universe.