The increase in the number of companies classifying themselves within "Red Zone" has gone up exponentially by 40 percent since December 2019, according to a report by global advisory & research firm Startup Genome.
Nearly 42 percent of startups globally are expected to be in the "Red Zone", with less than three months of runway, which essentially means 4 out of 10 startups are likely to perish in the next quarter if they don’t raise additional funds.
In fact, 74 percent of the thousand startups surveyed in 50 countries have seen a decline in revenue since the beginning of the crisis, with 16 percent of enterprises reporting a whopping 80 percent drop in earnings.
The study on the impact of COVID-19 on startup ecosystems has found that three out of every four startups work in industries that are severely affected by the coronavirus outbreak.
For entrepreneurs accustomed to building businesses in boom times, the economic impact from the COVID-19 pandemic has now quickly moved from a mere setback to a full-fledged existential shock sending business plans and strategies for a toss in these unprecedented times.
Over the past few weeks, Young Turks has been speaking to top investors and founders to create a crisis playbook for startups. Today CNBC-TV18’s Shereen Bhan is in conversation with the new team at the helm of Indian Private Equity and Venture Capital Association - Renuka Ramnath, chairperson, IVCA.
She is also founder & CEO, Multiples Alternate Asset Management. Karthik Reddy, vice chairman, IVCA. Karthik is co-founder & managing partner, Blume Ventures.