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?

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Morning is best time to shop for groceries without crowds - Business InsiderExperts recommend going grocery shopping at less crowded times. Business Insider asked three data companies when those times would actually be. Can we not anymore, can we replace corona pandemic. ... but after this article , it would not be best time anymore cz it's gonna be crowded !!!! SelfGoal .. lol ..
Source: BusinessInsider - 🏆 729. / 51 Read more »

How the US government will allocate $100 billion to hospitals: FAQ - Business InsiderWe got ahold of a document from Senate Democrats that provides clues to how the federal government will allocate $100 billion from the coronavirus stimulus to hospitals leonardkl *how they would want A bit late in the day, but makes a nice aspirational nevertheless.
Source: BusinessInsider - 🏆 729. / 51 Read more »

UK health tech startups help the NHS manage coronavirus workers - Business Insider'Tech is breaking down the silos that exist in the medical profession and we are encouraging transparency and accountability.'
Source: BusinessInsider - 🏆 729. / 51 Read more »

Tech incubator inside former US consulate helps cross-border startups - Business InsiderThe Bridge Accelerator Program gives companies along the US-Mexico border the skills to compete for contracts from multinational corporations.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Economic outlook: Goldman revises Q2 GDP lower with unemployment jump - Business Insider'Sky-high jobless claims numbers' and the $2 trillion stimulus bill contribute to Goldman's call for 'a deeper trough' and 'a bigger rebound.'
Source: BusinessInsider - 🏆 729. / 51 Read more »

US neobank Moven shutters as the coronavirus dries up funding - Business InsiderMoven, an early entrant to the US neobank market, is closing all accounts on April 30 after funding fell through due to the coronavirus pandemic.
Source: BusinessInsider - 🏆 729. / 51 Read more »