How risky is it to consider a startup to invest in when Coronavirus is causing significant harm to the world’s economy?

If you have a startup business and want to invest in, then hold on. This is not aa right time to enter into the market at all. The ongoing coronavirus outbreak has severely affected the world’s economy. All most all the businesses are gone down. In fact, most of the leading companies are also functioning with fewer staff. The current condition suggests that this is not the right time for the startup business to enter the market.

Some of the major reason is insufficient availability of raw material, lockdown for an uncertain period, and people are now only buying essential products. The production of various products, especially electronics products, has gone down. If you are planning to import such products from other countries, then, for now, this is not possible.

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It will be not easy to get funds

In such a condition, getting funds for most of the Indian startup will be quite difficult. In fact, most of them are now anticipating a great delay in this year. The reason is imposing travel restriction, and global level businesses slowdown. For example, CEO of Drivezy, a self-drive car rental startup company, informed that the company has some  Angel investors since October, and now it seems that the firm is losing them.

Most of the venture capitalists who are from Beijing were stuck there for the last few months and then can’t come to India to finalize the deal. Even though some startups have some domestic investors, they are also now facing issues in making the investment. Some of them don’t have many funds, and some of them are worried about the future. Everything has now pushed into uncertainty. Startups Business Strategy is planning to close down the round.

However, if you are planning/strategy to run a startup dealing with essential products selling medicines or grocery online, then there are some chances for survival. For now, the government has allowed such services to operate in India.

Besides, if you are planning to develop your products and launch them in 2022, the coronavirus should not be a major issue for you. Most of the startups are now trying their best to conserve.

Reference URL -

http://sinbexventures.mystrikingly.com/blog/how-risky-is-it-to-consider-a-startup-to-invest-in-when-coronavirus-is

Location: New Delhi, Delhi, India

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