Startups find state help "insufficient"
62 percent of German entrepreneurs don't see the benefit of governmental help yet and more results from this week's index
62 percent of all study participants called the actual state help insufficient, which is a significant plus of 10 percent compared to last week. It's even more alarming, since optimism for the future is fading rapidly as well as you'll see in our results below.
But there's hope. Startup founders don't wait around. A whooping 31 percent of entrepreneurs say that they're actually pivoting their product already. Here are more results from us:
Our study also indicates that a growing number of entrepreneurs thinks that the state help is insufficient. That number jumped up 12 percent from last week.
Optimism is fading within our startup community: Compared to last week only 64 percent said they were “rather optimistic” or even “very optimistic" about the future. That’s a decline of 7 percent compared to last week. Today, 36 percent do have a pessimistic standpoint (plus 7 percent) with over 12 percent (plus 6 percent) being even very pessimistic.
The startup community is increasingly running out of cash: The number of startups that say they are only equipped financially for a maximum of one month has more than doubled over the last week. And about two thirds of startups still say their funds would last for a maximum of 6 months.
To be able to sustain their business, now more entrepreneurs are starting to turn to investors again. More than half (57 percent) indicate they are looking for new funding now. (If you want to learn more about how to get cash from your VC during Corona we have 7 tipps for virtual pitches here. Top US investor Albert Wenger, managing director of Union Square Ventures in New York, gives some advice here.)
And here comes the good news: Entrepreneurs are taking destiny into their own hands during the crisis: 31 percent told us they are pivoting their product, that number has tripled compared to last week.
Entrepreneurs, you rock! Keep up the good work. And huge thanks to all of you who took a moment to answer our questions and please join the Founders Sentiment Index survey here again for next week.
