The entire month of April 2020 has been overshadowed by the Covid-19 pandemic and these are particularly tough times for startups that are still trying to make it big. As coronavirus cases have risen, investors have tightened their corpora and layoffs, pay cuts and furloughs have become the startup way of life.
Several stakeholders in the Indian startup ecosystem have time and again cautioned about early and growth-stage startups facing the brunt of the funding slowdown. Siddarth Pai of 3one4 Capital had highlighted that ‘Portfolio-Protection’ is going to be the top priority for the investors for the time being. He went on to add that venture capitalists (VCs) would also use this time to reassess a lot of their priorities, and review their portfolio closely to eliminate inefficient investments.
“Survival is the top priority,” Pai said
Meanwhile, Siddharth Talwar of Lightbox Ventures has also raised similar concerns for the early-stage and growth-stage companies, looking to raise funding at a time like this. Talwar elaborated that it’s not because of the lack of money, but because of the fear of what’s going to happen next.