Startup Communities — 30 days of uncertainty… and what’s next
What a month it has been. The past 30 days have transformed every complex system around us, and startup communities are no exception. By now, all have undergone a rapid transition that looked something like this…
In the first week, communities realized that the once-distant pandemic was in their hometowns, along with all of the uncertainty and upheaval that comes with it. Founders and ecosystem builders alike could no longer ignore this ominous threat and had to shift their focus. As social distancing recommendations turned to shelter-in-place orders, coworking spaces, incubators and other hubs moved from “we sanitize daily” to “we must shut our doors.” Leadership teams at these organizations called emergency meetings to discuss open questions around the upcoming Demo Day, next month’s program launch, or a big upcoming conference. Important contributors like universities and corporations were forced to look internally and address their own challenges. Startups flooded incubators, accelerators and VCs with pleas for help, requests for more funding, or both. Everyone wished they had prepared sooner.
In week two, startup communities grappled with this new reality. Founders had to throw their initial 2020 plans out the window. Many startup teams had to adapt to remote work for the first time, disrupting team dynamics and projects. Most public events were removed from calendars or otherwise reduced to a Zoom link. Even the most prepared support organizations had to abruptly shift to virtual and consider how to adapt for the future. For VCs and other portfolio-based networks, all hands on deck went to supporting their startups. Many new venture deals and partnerships stalled. Ecosystem leaders and governments stepped up to launch new support pages, funding opportunities and community guides dedicated to response efforts. Worldwide leader in e-citizenship Estonia organized one of the first digital hackathons, Hack the Crisis, inspiring many similar initiatives.
By week three, startup communities became virtual-first or dormant as they planned to do so. Founders worked overtime to motivate their teams, explored cost cutting measures and tapped their networks for help. A massive wave of remote tips, webinar series and new resource centers created a deluge of content. In response, many entrepreneur support organizations launched their own resources and virtual programming in an effort to sustain their value. For many of these organizations, the gravity of this shift set in, as leadership teams realized the potential for massive financial strain ahead. Despite the coming storm, everyone devoted as much time as they could to supporting entrepreneurs, neighbors, healthcare workers and others in dire need.
A full month in, the exponential growth of the pandemic has dashed any last hopes of a quick return to normalcy. By now, drastic decisions have been made in the name of survival: cancellations, re-negotiations, furloughs and layoffs across all types of organizations. Many virtual-first tools and initiatives have gathered steam, as organizations provide timely guidance on how to get government loans (see this CARES Act guide), how to cut expenses, and how to adjust business plans. Uncertainty remains, but one thing is certain: all startup communities are now virtual-first.
This forced experiment and the economic downturn ahead will doubtless transform startup ecosystems everywhere. The startups and support organizations that don’t adapt quickly may well shut down entirely. Funding will probably dry up and take a year or two to bounce back. And as with most developments in startup communities, the impact could be tragically regressive — hitting the small towns, early ecosystems and underrepresented founders the hardest.
Yet in the past few weeks, many stories of community support, founder pivots and collaborative projects have shed light on how startup communities have rallied in response. Startup communities have launched grassroots efforts like the Covid Accelerator, corporate relief programs, massive hackathons and many promising tech solutions. Community leaders have compiled virtual-first guides, impact reports and insights from what they’ve learned in Asia on the other end of the curve.
Now is the time when startup communities are needed most. Ecosystems and their leaders are remarkably adaptive, resilient and creative. As history shows, courageous leaders will step up in the face of recession, war or frozen isolation. Engage, inspire hope and chart a path to overcome these challenges.
Now is the time to communicate. Monitor collective morale and emphasize how the strengths of the community will outlast this crisis. Create space for human connection, formal or otherwise. Set time aside to host office hours with entrepreneurs in your community. Ask them what they need. Listen. Iterate.
Now is the time to reinvent. Apply for grants and financial relief. Revisit frameworks like the Community Canvas. Try new things. Adapt. Redefine your tools, explore different formats and create new best practices.
Now is the time to lean into your peers. Reach out and ask for help from your own network. Turn your weak ties into strong ones. Help everyone you can. Pay it forward.
Startup communities must innovate despite this crisis. Let’s keep the fire alight.
