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1/ In April we surveyed 250 early stage founders about the impact of COVID19 on their startups.
Key differences between Europe/UK founders and US founders discussed below.
Key differences between Europe/UK founders and US founders discussed below.
2/ Our survey of European/UK founders found they have:
Raised much less capital ($500k on avg vs $1.5M in the US)
Expect more negative impacts to their business from COVID19 (62% vs 43% in the US)
Raised much less capital ($500k on avg vs $1.5M in the US)Expect more negative impacts to their business from COVID19 (62% vs 43% in the US)
3/ European/UK founders have made deeper cuts:
75% of European founders have cut team expense (vs 51% of US founders). This includes layoffs, furloughs, salary cuts, hiring freezes
95% of European startups have cut other expenses to extend runway (vs 80% of US founders)
75% of European founders have cut team expense (vs 51% of US founders). This includes layoffs, furloughs, salary cuts, hiring freezes 95% of European startups have cut other expenses to extend runway (vs 80% of US founders)
4/ European/UK early stage founders may get hit harder by fundraising slowing:
Less European angels have been through tech downturns
UK angel environment driven by tax incentives
Lack of European preseed funds, need more like @seedcamp @speedinvest @pmoe @shemtovo
Less European angels have been through tech downturnsUK angel environment driven by tax incentives Lack of European preseed funds, need more like @seedcamp @speedinvest @pmoe @shemtovo
5/ Underrepresented founders are hit even harder by investor conservatism, pattern matching and "flight to quality." In crisis, it's more important than ever not to let diversity fall by the wayside.
Great read by @checkwarner https://medium.com/@checkwarner/investors-the-future-of-the-tech-industry-depends-on-us-8a384911ef86
Great read by @checkwarner https://medium.com/@checkwarner/investors-the-future-of-the-tech-industry-depends-on-us-8a384911ef86
6/ More European female founders say their gender has been a disadvantage in being an entrepreneur (58% vs 50% of US founders).
Great article by @JFLenhard in @crunchbase about our survey on COVID's impact on European and American founders: https://news.crunchbase.com/news/a-global-perspective-covids-impact-on-european-and-american-female-founders-vcs/1035/
Great article by @JFLenhard in @crunchbase about our survey on COVID's impact on European and American founders: https://news.crunchbase.com/news/a-global-perspective-covids-impact-on-european-and-american-female-founders-vcs/1035/
7/ Something that gives me hope:
European female founders feel more supported by the founder community (58% vs 45% in the US).
Could be all the strong female networks here: @femstreet @diversityvc @zincvc @ThisIsYSYS @weareonetech @AdasList @bloomingfoundrs @angelacademe
European female founders feel more supported by the founder community (58% vs 45% in the US).
Could be all the strong female networks here: @femstreet @diversityvc @zincvc @ThisIsYSYS @weareonetech @AdasList @bloomingfoundrs @angelacademe
8/ Founders in Europe/UK and other emerging ecosystems haven’t had the luxury of free flowing capital, so scrappiness is built into their DNA. Founders are taking decisive action, which gives me confidence.
Read the full report here
https://medium.com/janeventurecapital/founder-survey-reveals-impact-of-covid-19-on-early-stage-startups-c3dbae129040
Read the full report here
https://medium.com/janeventurecapital/founder-survey-reveals-impact-of-covid-19-on-early-stage-startups-c3dbae129040
