Impact of COVID-19 on Startup Funding

A few people have asked me how startups/scaleups have been impacted during the past 9-months. 

Here is my general perspective: 

  • If a startup/scaleup has been luckily funded before March more funding has been available and lots more helpful hands-on mentoring by their angels or lead funders. 
  • If you were a lucky startup/scaleup in a ‘covid accelerated’ industry funding has not been a problem. 

In fact in our world we have seen an increase in funding over the past 6 months with a very healthy pipeline for the next 6 months. 

  • Early stage startup entrepreneurs without experience of economic valleys (2000 internet bubble, 2008 sub-prime, 2020 Covid-19) and without a mentor struggled 

However in most cases if they ask for help, have a good team, are technically brilliant and most importantly are coachable they have pulled through stronger with regular accountability checkins. 

*Much as in Leadership; You get wartime leaders and peacetime leaders.

The same is true for Entrepreneurs. 

Bottom line though, more funding across the board (Angel, Seed, Series A & B) needs to flow to the right place and opportunities in our industry.