What Investors are Saying: Startups should re-forecast and re-strategize for 2020 given the downturn in the economy
- March 26, 2020
- 2 min
In a recent investor study by Getwizer, more than half of the participants said that now either investing less or holding off on investments entirely.
The study revealed that the most attractive industry in light of COVID-19 is Healthcare. Other attractive opportunities at this time include software-based industries to keep people engaged and productive at home, on the consumer-side, and to keep companies informed and safe, on the enterprise-side.
Investors expect that the aftermath of this pandemic will have long-ranging repercussions. Almost 40% noted the effects of the outbreak will last through the fourth quarter and almost 50% believe COVID-19 will continue to have a significant influence on the VC market well into 2021.
THE NEED TO RE-STRATEGIZE
Eight out of ten investors recommend that start-ups cut costs, reduce their burn-rate to increase their runway. Half of the investors advised startups to re-forecast and re-strategize for 2020 given the downturn in the economy. The advice is to focus on the roadmap as opposed to immediate sales. Some investors recommended engaging with both customers and investors on an ongoing basis, leveraging the crisis creatively, and maintaining a sense of calm. The storm will pass and the most prepared startups will be ready to strike.
Ping us at info@Getwizer.com to get the full report (at no cost, of course!)
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