Lately, I’ve been often asked how startups are handling COVID-19. Based on my conversations with GAN Accelerators, GAN Corporate Partners, GSSN Studios, and the startups GAN Ventures has invested in, here is how startups seem to be faring in this season.

When It Comes To Raising Money

Startups who are fundraising fall into one of three categories —

  • 65% of startups are in a holding pattern either because they just completed a fundraising round, or they are doing fine without raising and prefer not to raise in a season when average valuations tend to be this low.
  • 20% of startups can’t raise money right now because investors are doubling down on their existing portfolios or are focused on startups who are finding new growth in this season.

When It Comes to Generating Revenue

For most companies, generating revenue will be difficult during this time. Yet, China’s high-tech sector is up 12% since the beginning of 2020.

When It Comes to Keeping a Business Alive

As of today, we’re only seeing a small number of startups go out of business. That’s because global governments are providing support for startups, and early-stage companies have enough cash. And, in some cases, those startups are generating more cash than they had before (as discussed above).

When It Comes to Staying Mentally and Emotionally Healthy

Founders’ emotional and mental health is concerning to me in this season. The founder personality is one that is used to ups and downs — in fact, 94% of founders report having experienced depression, anxiety, or other mental health challenges.

Helping to give startups the power to create and grow their business wherever they are as CEO of GAN: @GANconnect

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