There is despair, but also a desire to react and come together to look ahead.
On top of traditional entrepreneurial finance channels, entrepreneurs have many other tools at their disposal.
Kickstarter research found that support for crowdfunding campaigns and the success rate of campaigns is consistent with pre-pandemic metrics. However, the number of live projects on Kickstarter is down about 25% from the same time last year. Meanwhile, the largest equity crowdfunding platform, Wefunder, just reported that investor volume was up 35% from February through April and, in early May, reported a record $2 million of investment on a single day.
The lack of disposable income casts shadows on the good performance of the industry in the first semester of the year.
Gita Gopinath, Sharan Burrows, and Jennifer Morgan give some ideas about how the world can change in response to the COVID-19 pandemic. (Source: WEF)
The unique relational nature of entrepreneurial finance may make it highly susceptible to such a shock owing to the need for face-to-face interaction between investors and entrepreneurs.
This is what Kickstarter’s CEO told The Verge.
"Systemic shifts require collective intent - something that is still scarce in business communities across the globe. The COVID-19 pandemic has suddenly changed that, and has created the necessary conditions for collective intent. The human race is at a crossroads, and the choices we make now will define future generations and their way of life."
Europe wants to mobilise all the resources at its disposal to kickstart the economy, including its financial markets.
The British Government ha presented the fund to help startups during the Coronavirus pandemic as the equity crowdfunding industry express some concerns.
“People around the world are coming up with ideas on how to solve some of the problems and challenges we’ve faced in the last few weeks. For a lot of people, there’s a lot of time on their hands to do research, there’s a lot of thinking time. It is a perfect time to be doing that.”
Marc Andreessen shares his views on why every Western institution was unprepared for the coronavirus pandemic, despite many prior warnings.
Beaten down by the coronavirus outbreak, the world economy in 2020 will suffer its worst year since the Great Depression of the 1930s, says Gita Gopinath, chief economist of the International Monetary Fund.
With economies in turmoil, how bad will the damage be?
Read, seen and listen in my lockdown.
Crowdfunding is steadily growing, but how the market will evolve in the current climate?
Venture capital, angels and crowdfunding on the forefront to contribute fighting Coronavirus.
With a budget of €164 million, this call is “bottom up”, meaning there are no predefined thematic priorities