The economic downturn of the Corona period has had a direct impact on every region. A FICCI survey has revealed that during the last three months, about 12% of start-up companies have covered their bags. Other start-ups are also going through a lot of trouble and cash crunch. At the same time, investors have also held back their old decisions to invest in start-up companies, while about 10 percent of the investors have canceled their investment agreements.

An interesting point has emerged in the survey that during the time that investors have not shown interest in other sectors, 35% of the investors have expressed their interest to invest in healthcare companies. As many as 59 percents of investors in this FICCI survey released on Sunday said that it is better to pursue their agreements with existing companies rather than putting money in a new start-up until the situation is normal. Most of the investors have shown interest in investing in healthcare, after which the focus of investors is to invest in companies related to education and technology.

Heavy damage to start-ups

A third of the 250 start-up companies surveyed said that their investors have postponed their decision to invest in the project for a while, while 10 percent have said that their investors have fully invested in their projects. Has refused. Only eight percent of the companies have admitted that cash has been made available to them as per Kovid's earlier investment agreement. According to the results obtained from the survey, 70 percent of start-ups have suffered heavy losses due to Corona. 12 percent of start-ups have had to close, while 60 percent of start-ups have been running with heavy losses.

Staff pay cuts

According to the survey, only 22 percent of the companies have enough money to be able to meet their permanent expenses for the next three to six months. That is, if there is no scope for improvement in the situation in the meantime, then there can be a situation of them coming to a standstill. Companies have solved this problem in the form of reducing staff and reducing their wages. Nearly a third of companies have said that they can cut staff further if business prospects do not improve.

In many companies, the salary of employees has been reduced by 20 to 40 percent between April and June. FICCI Start-up Committee Chairman Ganesh Raju has said that it has been clear from this survey that the slowdown in the Corona period has hurt the most start-ups. They will have to use the fund much better to keep going even in this situation.