While around 40 percent of startups were negatively impacted, 15 percent of startups were forced to discontinue operations due to the COVID-19 pandemic between March to June 2020, says TiE-Zinnov report
Four Indian startups gained the unicorn status amidst the COVID-19 pandemic and four more are expected to join the club in 2020, said a report by TiE Delhi-NCR and Zinnov.
The report titled 'Covid 19 and Antifragility of Indian Startup Ecosystem' also suggested that 75 percent of startups are gradually recovering post the nationwide lockdown, while 30 percent have pivoted to newer markets for alternative revenue streams.
The report claimed that the startup ecosystem is expected to create 7-7.5 lakh direct jobs and 26-28 lakh indirect jobs by the year-end.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
The report said while around 40 percent of startups were negatively impacted, 15 percent of startups were forced to discontinue operations due to the COVID-19 pandemic between March to June 2020.
Indian startups experienced a decline in overall funding by 50 percent during the lockdown as compared to pre-COVID levels, the report added.
"The decline was even more prominent in seed and early-stage investments. There had been a 48 percent y-o-y decline in funding by CY Q2 and 37 percent decline in the number of deals in CY Q2. And, the industry saw more than 55 percent y-o-y decline in seed and early-stage funding in CY Q2 2020 and 38 percent y-o-y decline in funding in early-stage startups," said TiE Delhi-NCR president Rajan Anandan while presenting the report in a digital conference.
He added that a significant decline in late-stage funding was also experienced. However, in 2019, India became the third-largest startup ecosystem in the world. India had 26 unicorns till January 1, 2020, and the startups received $14.5 billion funding.The report pointed out that Indian startups did see a gradual recovery from the month of September 2020. The sectors which saw a positive growth include education, healthcare, and commerce. While travel, hospitality, and mobility were negatively impacted.