More than half of industry professionals expect it to take a minimum of 12 months before the stratup ecosystem recovers from the coronavirus pandemic, research shows.
Kamet Ventures surveyed attendees of a webinar and found that six out of 10 industry professionals believed activity and confidence will take 12 months or more to return to the ecosystem.
Furthermore, one-third of the respondents claimed that economic and political risk is the largest barrier to innovation during the recovery period. Other setbacks included the ability to raise funds (24%) and regulations (21%).
Kamet Ventures co-founder and managing director Michael Niddam said, “Seeing economic and political risk beat funding to emerge as the biggest concern is interesting. There’s no doubt the disruption caused by the pandemic has been significant.
“But I’d suggest that this finding points to an ecosystem all too aware that with the final Brexit negotiations still to be concluded, the US presidential elections taking place in November, and Europe once again grappling with how best to support its harder-hit southern nations, that impact could well be compounded before the year is out.”
While the market might take some time to recuperate, it has not hindered the optimism of entrepreneurs. The research claims that only 8% believe that stifled creativity will be the biggest barrier to innovation during the recovery period.
Niddam stated that a number of laboratories are working on next-generation technologies like quantum computing, but have been forced to stop work during the pandemic. He went on to explain that governments must commit to opening them up as soon as possible.
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