Startup Genome commissioned an excellent survey on The Impact of COVID-19 on Global Startup Ecosystems
Their data was taken from 1070 respondents across 50 countries and a summary of the findings is shown below.
Whilst the survey considers all startups, not just FinTech, and takes a Global, not just a European perspective, it none the less makes for sobering reading.
There is no getting away from the fact that whilst cloud-based financial technology companies provide firms with an array of accelerated options to help grow income and reduce costs, there will inevitably be some failures brought about by the current crisis.
The medium term still presents a fantastic opportunity for firms to adopt technology that: automates processes, increases operational resilience, monetises data and augments customer experiences, but in the very short term we recommend that regulated firms take some simple steps to protect themselves:
– Review and update your outsourcing register
– Assess the firms ability to continue to provide their service.
– Respond where appropriate with the identified and prioritised vendors
These steps will enable your company to emerge stronger.
We can help you.
Adoptech can build you a robust third-party risk management framework that meets regulatory requirements and supports your adoption of innovative third-party services. We can also conduct remote vendor assessments, risk register refreshes, vendor monitoring and offer vendor service availability assurance.
#Adoptech – Predict – Prevent – Protect
A summary of the Startup Genome survey :
– 41% have 3 months or less of cash flow (29% were already in this “red zone” pre crisis)
– Of those with term sheets pre-crisis, 73% have had them pulled or the process slowed down
– 74% have terminated full-time staff
– 40% laid off 20% and 26% laid off 60% consistently across the Globe
– 74% saw their revenues decline, of which 16% saw revenue decline by 80%. 10% saw revenue increase
– 38% of startups have not received assistance whereas 62% are currently receiving or are likely to receive assistance.