Coronavirus Pandemic Raises Funding Difficulties For Small Companies
After the coronavirus pandemic, not only the living conditions of the people have changed but the manner of business has also changed. The focus of businessmen is now more on the digital medium. A report by data analytics firm Tracxn shows that the funding for startups has fallen by 29 percent in the first six months of this year due to the lockdown. This funding was $5.9 billion in the first quarter of last year, which has now fallen to $4.2 billion.
According to Tracxn's India Tech semi-annual factsheet, 725 companies received funding from June to 2019, while only 443 companies received funding from January to June this year. It is a matter of concern that it consists mostly of digital companies that are involved in e-commerce, IT, and online education have all entered the market on a large scale.
With the help of this report, it is easy to understand that investors' doors are closed to small and non-digital companies. For small startups, it is going to be more difficult to move forward after the pandemic and the digital medium is going to grow.