An economic downturn will mean less funding opportunities for startups - Business Insider

Zoom founder Eric Yuan speaks before the Nasdaq opening bell ceremony on April 18, 2019 in New York City.The coronavirus pandemic has ushered in an economic slowdown, and like any financial hardship, it will impact the ability of startups to fundraise.

If history can teach us anything about the trials and tribulations startups have to go through during a downturn, we decided to look at the most recent market crash in September 2008 and looked at how VC-led rounds were impacted during the first full year after the crash. Compounding this, in 2009, we also saw a dramatic increase in the median percent equity sold per round.This means that not only were startups raising less capital, but they were also selling a higher percent of their company for that capital than before the 2008 crash.Overall, if we can learn from history, there is a decent chance startups are in for a rough time ahead.

But we have to continue to believe in better days ahead. After all, we know that the last recession saw the birth of some of the most iconic companies in the past decade. Uber, Airbnb, Slack, Pinterest, WhatsApp, and Square are just a handful of the companies forged within the parameters of a downturn.

What about telemedicine? Will current stay-at-home policies change consumer perception towards digital health in the long run? At the same time, what will startups like Carbon Health, Remedy, and Plushcare do to continue to make the teledoctor experience more human?

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