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Nearly half of startups struggling due to COVID

Nearly half of startups struggling due to COVID Blockchain and cybersecurity faring the best during pandemic

NEW YORK—According to Atlas VPN investigation, 40 percent of startups saw their revenue drop by 40 percent or more during the COVID-19 pandemic.

More than 7 in 10 startups saw their income drop since the start of the pandemic, and on average, saw their revenue diminish by 32 percent.

Even 18 percent of new companies saw their revenue plummet anywhere from 61 percent to 99 percent since the beginning of the crisis. A significant portion, 7 percent of startups, lost all their customers due to the pandemic.

“Sadly, the fact is that to survive, new companies will have to cut expenses, which means that layoffs are inevitable,” Atlas VPN COO Rachel Welch, said.

It turns out that the impact of the COVID-19 crisis on startups’ revenue varies greatly depending on the industry the company is in.

New projects in the blockchain and crypto industry held up the best, with an average decrease in revenue of just 14 percent. Close behind follows the cybersecurity industry, in which startups’ revenue diminished by around 17 percent since the start of the pandemic.

To see a full breakdown by industry, click here.


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