2020 was the most affected pandemic year and also has its impact on businesses. Only a few startups were found in this pandemic hit year. Around 2442 startups were found in 2019 and only 751 in 2020. About 32 startups were shut down due to the epidemic.
Pandemic has reshaped the startup world
There is no doubt in saying that the Covid-19 pandemic period has reshaped the startup world completely. It was a highly stressful period for startups but the SAAS sector seized new opportunities as biotech firms gave rise to the Coronavirus challenge.
This year also Chinese investors were stopping investing in the country due to India-China dispute at border as well as coronavirus which is also another reason for not investing. But the dependency group created a flow effect in the country. Here are the trends that reshaped the startup world.
1. Pandemic Implemented Digitization
Pandemic has come with a new opportunity with implementation of digitalization and gave SAAS software for the service. According to the partner of private equity fund, Covid-19 is a Y2K opportunity for us in great shape. Being digital-first of many startups is an opportunity to quickly develop new products or services to meet the challenges of coronavirus.
2. Flexible Delivery and Diversity in Talent
By the way, a coronavirus year is challenging for start-ups to physically work somewhere. Even some startups are doing well without affecting their work and performance. Flexible delivery enables better connectivity with startups that reduce time and office interruptions. The distribution team has offered benefits and necessary to survive.
3. Restructuring Work Culture
Diversity has increased in the workforce. There has also been an increase in hiring policies and culture. Many startups have recruited new employees in Coronavirus time.
Many startups were healthcare-based, financial services, digital marketing, ad tech, cloud connectivity, and online spread to consumers and saw demand for their products and services during the epidemic.
4. Supply Chain
China was the center of the supply chain well before the epidemic, but after the epidemic, the supply chain was closed and dependence for supplies to China was halted.
Well, countries want more self-reliant even they opened up many opportunities for young start-up entrepreneurs for innovation, disruptive solutions for the supply chain. This will further strengthen the self-reliance of countries.
5. Changes in the Investment Process
Industries are affected globally due to the epidemic. Such as travel restrictions have reduced cross-border capital investment over the past few months. Investment sizes are becoming smaller. Startups are the major drivers of countries. The coronavirus has also given a boost to many start-up community. The world adopts new paradigms of life.
6. Adoption of Technology
Today’s start-up is built on technologies that have gained importance over the years. In today’s world, it has now become an essential tool for the growth of start-ups. Cloud computing is important for many startup businesses that assist with virtual learning to food delivery and more. Stratups always want a fast return on their investment, therefore, startups are most important to drive the country’s economic growth.
7. Adoption of New Things
In Coronavirus time the start-up founders expanded their runway range. Even start-ups are revising their product and business roadmap, even though with a more careful approach. Post-covid time capital efficiency is more important than unrestrained growth. The drop in salary due to the coronavirus effect is seen almost globally.