In Ukraine, fintech startups have been the most affected by the crisis
Results from a startup genome study showed that 41% of startups worldwide would be forced to stop their activities after 3 months if they did not attract new investment or increase their profitability.
To save money, 74% of companies were forced to cut teams. Only 4% of companies were able to avoid the cuts. 95% reduced payroll. Overall revenue is also declining – three out of four startups are engaged in the areas most impacted by COVID-19: tourism, entertainment, sales and transportation.
But at the same time, according to the Liga.tech survey, most Ukrainian startups who participated in the survey do not experience catastrophic financial difficulties. They describe the situation as “stable”, “at the level”, “there were no drops”, “we cover operating costs up to 100%”.
First, domestic startups cut software expenses, on software – they refuse paid versions of programs or switch to cheaper analogs. Many companies save office rent.
The impact of the crisis was felt by startups working in the field of Ukrainian fintech. This was confirmed by Very Good Security and Mycredit. Companies said demand for services fell. The industry expects quarantine and economic recovery in the country.
Summary PAYSPACE magazine
Recall, the UK is preparing an aid package of £ 1.25 billion ($ 1.54 billion) for startups affected by the coronavirus epidemic. The financial support includes a £ 500 million investment consisting of funds from government and private investors, which will be transferred to fast growing companies.
Read: Coronacrisis: How Businesses Found themselves in a Startup Position.
By content: Liga.Tech