Three quarters of startups have laid off full-time employees due to COVID-19, according to a Startup Genome survey of 45 countries. And most of them have just a few months of cash reserves.
And startups shouldn’t expect new cash any time soon.
If we can take China as an example, venture deals dropped 57% there in February at the peak of the country’s shutdown. Even worse, that’s probably still higher than it would have been, thanks to a lag in deal flow that was likely already in progress when the Coronavirus pandemic hit.