“The worst might be over” — that’s the cautiously optimistic sentiment among tech founders, revealed in a new report published today by Slush and the City of Helsinki, in collaboration with NGP Capital.
The report, heartily titled “QUARANTINED GROWTH – Founders’ perspectives on the COVID-19 crisis & a Helsinki startup ecosystem deep dive”, surveyed over 330 startup founders from across the globe. The study compares viewpoints and business conditions now to how founders felt six months ago.
The study suggests that, despite the ongoing economic uncertainty, startups are doing alright. Runways haven’t drained as feared in March 2020. Most founders have also avoided layoffs and over a third have even hired more. The main winners here were any digital-first sectors like e-commerce, fintech and edtech.
That said, not everyone is out of the woods, especially those early-stage startups that need funding. About 55 percent of founders now report a runway of less than six months, up from 50 percent in March. In addition, about 35 percent of founders are now less optimistic about their access to capital than they were six months ago.