The coronavirus pandemic is proving itself as a curse to the business world, especially the start-up businesses. Several such firms who are on the verge of just starting a business or have just started are in a dilemma of how to overcome this unexpected situation. While some are trying their full to cope up and break through the storm, some are on the way to their end.
However, the Managing Director of the Sequoia Capital, Rajan Anandan, in an e-mail interaction had discussed what can be done in such a critical situation to somehow normalize the crisis, deciding what the new normal will be, what should be the startups’ focus, why firms involving ed-tech, gaming, healthcare, and robotics have a chance of succeeding more.
The crisis with its high magnitude is throwing its impact globally. All the people throughout the world are facing adversities and this will surely continue for a couple of periods. But India is yet to reach the peak of the crisis and therefore Anandan said “To draw any conclusions about the ‘new normal’ at this stage, will be premature”.
Although, the fact, that everything will not remain like before, stays constant. The pandemic situation is constantly bringing about changes in the mind and actions of the consumers and this will in turn put an impact on the startups’ genre in the upcoming years. Therefore, the startup industries will have to find various effective plans so that they can survive through this odd.
Every founder of a startup business, in this situation, should be able to foresee what will be the position of their business post-Covid and for that proper financial backup is mandatory. Once it is assured that there is enough funding in the business, one can work on building their business’s foundation strong, make the best possible innovations, so that they remain prepared for any opportunities on the other side of Covid-19.
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While thousands of India’s startups are facing this existential crisis, some businesses are countercyclical and are seeing significant growth in the current market situations. Ed-tech, digital health, gaming, SaaS, SME tech, direct to customer brands and Ag-tech are some of the sectors that are experiencing major inflection point and are likely to grow more in years to come. Covid-19 in a way has brought about a change in the behavioral pattern of the customers towards the digitization trend in just two months. Online learning, digital health, online shopping, and payments have made the lives of the people a bit less difficult during this pandemic.
In addition to the basic funding need, cost reduction of digital products, efficiency, enabling remote work, improving collaboration, and enabling all things contactless are some of the essentials that a startup should take up to make their business grow.