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A survey of 200 UK start-ups has shown the precariousness of young companies in the face of the Covid-19 pandemic. The most striking statistic was that two-fifths of respondents estimated that their current runway period is a year or less. Silicon Valley-based research project Startup Genome estimated that around the world, 41% of start-ups have a cash runway of just 3 months.
Fundraising has also been severely curtailed, with 40 per cent of start-ups saying they had delayed plans to pitch for investment. Brent Hoberman, executive chairman at Founders Factory, Firstminute Capital and Founders Forum, suggested that new investment was likely to be reserved for later-stage start-ups. “Early-stage tech businesses, which are critical for future job creation, are at a critical juncture,” he said.
