Is COVID-19 be the best time of startup. Is it really?
March 12, 2020, 7:35 a.m.

Is COVID-19 be the best time of startup. Is it really?

March 12, 2020, 7:35 a.m.

Fatal COVID-19 virus is spreading all over the world like a fire.  The impact of this malignant virus is not only affecting the human life but also it affect our economy too. The  impulse can easily seen in the Asian startup system too. According to the report , financier for privet asian companies are taking their step back  due to this global epidemic.

Outbreak and its impact

Contempt a big economy, china is suffering with problems such as, economic slack, trade war ,campaign to remove dependence on local governments and companies from taking loans.

Some countries has banned direct travel from china ,and due to this delegations of Chinese investors are unable to attend business conferences, they are unable to visit on their business  trip.

China has been major source of  investment into the startups in Asia even in all over the world.

There are many products that are made in China, and the whole world depends on China, but due to this COVID-19, the manufacturing of those products was badly affected. Due to the late production, the export was also delayed and the world market had to bear its huge loss.

Malls and restaurants are reporting a fifth-place decline in the past fortnight,  fear of COVID-19 is reducing the number of people moving to crowded places that small traders are also facing, including consumer internet. Firms are increasing hygiene and safety measures for delivery agents and consumers - in anticipation of increased online transactions in the coming weeks.

With the spread of this burgeoning disease , financial markets across Asia are witnessing a decline. In addition, there is a  steep decline in stocks in china as investors are considering the potential impact of COVID-19 Virus.

Alike, when WHO declared the global emergency in 2016, due to Zika virus  local financing  abandoned  alike in the first quarter of the year.  South America affected by that virus mainly ,and the whole year saw the financing volume capacity declined by half of the total.  When WHO  accomplished  the warning, the capital started to attain  momentum again. And in second quarter of the year, South America  established is new place in the market in the number of deals.

After Chinese new year normally investors are very active , but this year they will be able to meet the founders as late as march. After the meeting it will take at least two to three months. To close a series A capital stage and it will take around  six to nine months to close  a series B stage.

Start up in service sectors, adding tourism and retail is badly affected by COVID-19 Virus.  And now potentially  it will affect the whole year in performance and valuation. Companies affected by this virus such as offering food delivery, home entertainment,  insurance ,healthcare, and corporate collaborations.

Is COVID-19 be the best time of startup. Is it really???

Earlier we saw a steep decline in the stock market, which greatly affected the global economy. While the economy is getting affected so much, some experts are considering this COVID-19 as good for startup as well.

Following the challenging year of 2019, the COVID-19 outbreak pretty much spoiled the Chinese New Year holiday.  Things literally came into a standstill as the Chinese Government fought to contain the outbreak occurring in the winter season, the slowest part of the year where venture capitalists are taking a break from investing.   

This unexpected positive news comes from a multi-stage venture capital investor, that runs multiple world-class vertical accelerator programs, and provides seed, venture and growth stage follow-on investment into superstar companies.  It is the world’s second most active seed investor and third most active early-stage investor according to Crunchbase data.  Recently there are over 900 startups has funded and currently funds over 150 startups per year with programs that includes Chinaccelerator which focus on cross-border internet and mobile in Asia.