The Report: Before
and After the Pandemic

1)Before and after the covid-19 pandemic

400+ Startup Founders Share Key Data About the Impact of COVID-19

The startup ecosystem moves fast and breaks new grounds. Major black swan events, like the COVID-19 pandemic, force entrepreneurs to be even more flexible and adapt more quickly to the rapidly changing times.

We are proud to share this report based on data from 400+ startups collected before and during the outbreak of COVID-19. The data points offer a unique glimpse into how the startup ecosystem has dramatically changed and adapted to the crisis.

Sneak peek
of selected highlights

Fundraising

The COVID-19 effect: It is getting more difficult to secure funding

  • 42% Longer to close
  • 28% Raising less
  • 25% Froze round
  • 19% Lowered valuation

The Secondary Market

In the past year, the secondary market gained popularity, but is not yet standardized

38% Series B companies had secondary sales

Who sold their shares?

  • 67% founders
  • 33% employees

Compensation

Due to the current situation, some founders are adjusting employee compensation

  • 60% Not Lowering Salaries
  • 40% Lowering Salaries

Management stock

Stock options: Management is receiving less than expected

57% of executive team gets between 0.5 – 2% Equity

TALENT

When to bring finance in-house? 76% of startups don't have an in-house CFO

The role of a startup CFO has evolved considerably, encompassing much more than bean counting, budgeting and closing the books. Today’s CFO is a visionary, taking an active role in determining company direction, securing strategic relationships and planning for growth.

In the past, the need for an in-house CFO was prompted by significant funding. Until then, companies could outsource bookkeeping or hire a CFO part-time for specific services. Not anymore. Because companies are going public at a later stage, they need CFOs way in advance of an IPO. Today’s CFOs are an essential part of the company from an earlier stage, driving strategic decisions and proactively planning for the future.

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