Startups Will Save the World, but We Must Save Them First
The most innovative startups and the urge for adaptive policies during and after the COVID-19 pandemic
Every day we witness how innovative startups provide solutions to the ongoing challenges in the global control of the COVID-19 pandemic. Despite all the efforts, reality has shown that the majority of these businesses and the organizations that support them are suffering severely from the impact of the outbreak.
In a survey conducted by the Startup Genome, two-thirds of startups say they will run out of money within six months, and four out of ten say it will happen within three months. Nearly 75% of startups had to end full-time contracts — where around 40% had kicked 20% or more of their employees, and 25% had fired over 60% of their staff since the beginning of the crisis.
Between 2017 and the first half of 2019 the global startup economy generated around 3 trillion US dollars in economic value, that figure is higher than the GDP of a G7 economy, but billions may banish as the pandemic continues to disrupt business operations. It is difficult to evaluate the number of startups that will break, a large portion of startups will probably do, but the startup economy is striving to adapt to the situation by focusing on the need to innovate and diversify business strategies. Survivors will emerge as leaders. Cloud-computing startups and the digitization of small and medium enterprises will strengthen, and we will also see many new startups. More than half of Fortune 500 companies were established during a downturn.
There will be winners and losers, however, the startup economy needs support from governments and policymakers to cope with the current situation, as we have invested so much time and resources into building it to see how a big portion of it collapses.
The Role of Startups During COVID-19
The current crisis has demonstrated more than ever that the role of emerging technologies and entrepreneurial innovation is essential for the functioning of our societies and economies. It has convinced governments around the world to place their hope in the hands of the tech industry, and as expected, startups have come to the front in the fight against the pandemic.
The active collaboration between startups and governments has brought ingenious, productive and effective solutions to support in tracing the virus and allowing for better decision-making at a national and global scale. For instance, some tech startups have already implemented technologies in supply chains, the healthcare industry, and enterprise solutions to support businesses in adapting to the new reality.
Some revolutionary startups helping in the fight against the virus
- Binah.ai: This brilliant Tel-Aviv based startup allows people to extract medical-grade vital signs measurements using smartphones, tablets or any other camera-equipped device.
- Biomeme: The startup provides kits with rapid tests to detect Ribonucleic acid (RNA) molecules of SARS Co-V that causes COVID-19 disease. These tests come in strips, plates, and bulk vials.
- BlueDot: An outbreak risk software that uses human and artificial intelligence to mitigate exposure to infectious diseases. The startup developed a global early warning system to track and predict the spread of COVID-19.
While these ingenious startups are essential for coping during the crisis and for the future of innovation, the pandemic also resembles the importance of smaller businesses with creative solutions.
It is not necessary to have a billion-dollar revenue. Many local and smaller startups have turned into the selling of face masks, antibacterial gel, and home-devices; some ride-hailing startups now deliver groceries and medicine, others even produce content to relieve stress, provide workout routines and educational materials to adapt to “the new normal”.
Some of these startups include:
- The Call List: A New York-based startup that helps brands deepen their relationship with their customers and monetize interactive video calls by turning fans into customers and providing participants with the chance to interact with creators, influencers and experts directly from their smart devices.
- edX — A platform for massive open online courses, known as MOOC (Massive Online Open Course), from top-ranked universities in the world. Most of their content is free to access, and certifications are affordable.
- Gophr — UK-based startup that collaborates with SMEs and various digital platforms by transporting products. Gophr decided to focus on delivering pharmaceuticals, tests, and other products for labs and pharmas during the crisis.
- Tarjimly — Born in Palo Alto, Tarjimly connects the world’s translators to refugees through their on-demand translation app. The platform brings support to people in need of humanitarian translation, especially refugees and immigrants which are some of the hardest hit by the pandemic.
Governments and Startups — The Urge for Adaptive Policies
Governments around the world need the help of cutting-edge and forthcoming innovations, and startups need the support of governments. Most businesses may see these solutions as short-term opportunities, but it is an essential strategy to survive and a huge opportunity for growth among economies.
In this context, the global startup economy calls upon policymakers and business leaders to take action and provide more efficient support. Policymakers must develop sustainable measures to support this kind of entrepreneurship, the current situation requires political, economic and administrative authority in the development, diffusion and operation of technology in societies. Countries should also design better policies that can adapt to the current economic situation by promoting access to financing, allowing zero-interest loans, more access to capital investment, and better employment support schemes. It should also aim at generating demand to sustain entrepreneurial activity as well as actions to guide and strengthen the value proposals of entrepreneurs towards the social and productive challenges of the post-pandemic scenario. Startups not only drive massive job growth and economic activity, but they also create a vibrant entrepreneurial environment.
“It is not the strongest of the species that survives, nor the most intelligent; it is the one most adaptable to change.” — Charles Darwin
