The Coronavirus is not only impacting the literal health of the world but it is poised to clobber startup funding – along with the rest of the global economy.
According to a report by CBInsights, startup funding may tank more than 16% during Q1. You also have to consider that for many people Coronavirus, or COVID-19, was just a bad story happening in China until February – so early-stage funding most likely stalled just in the past few weeks.
The report states that private market funding is on pace to hit $77 billion in the first quarter down from $92 billion in Q4 (12%). In Asia, things are even more dire as funding is predicted to decline by 35% in Q1 in comparison to the prior quarter.
The author posits that if past “outbreaks” are any indicator private markets will sag for the rest of the year. But then, when is the last time a pathogen like COVID-19 emerged to swamp the world with a such a lethal virus?
Perhaps one of these early-stage Medtech ventures can save the day with a successful therapeutic treatment…