List of Best Startup Opportunities after COVID-19
The novel Coronavirus outbreak disturbed the global economy on a massive scale. It is an incomparable challenge for all businesses including startups around the world. The world is scrambling hard to combat the current and upcoming economic consequences of this deadly event. Startups are the biggest job creators in Europe and high hope for a fast economic recovery. Newly created startups are looking for business ideas and opportunities after the global pandemic. In this article, we publish the list of Startup opportunities after Covid-19.
The economic effects and the subsequent lockdowns for the Covid-19 pandemic are severely impacted startups and small businesses globally, especially given that many have had to suspend their services, implement pay cuts, and fire or furlough their workforces to make it through this difficult period. It is, therefore, safe to say that we are awaiting a major economic contraction, recovering from which will take some time.
In a study with over 100 companies, 51% reported that they didn’t suspend their services in Covid-19. The highest numbers of Startup companies that are operating in the Corona Virus are from e-commerce, edtech, health tech, and IoT.
Post-Pandemic Startup’s Issues
One of the major issues which startup companies will face after the Covid-19 will be fundraising, therefore startups need to reconsider their strategy for the future. According to Startup Genome’s recent report, venture capital from China has gone down by 50 – 70% in January and February alone due to the Coronavirus pandemic.
49% of the 101 companies, said they are already facing delays in closing ongoing investment deals while 37% did not have any investments in the pipeline at all.
How did the Startups look after Covid-19?
Start-ups are the lifeblood of competitive economic growth and job creation and are often a catalyst for radical innovation. But we have never experienced a global pandemic with such magnitude, past economic recessions have taught us that this period is also an opportunity for startups. Companies like Whatsapp, Uber, and Venmo were all founded soon after the 2008 great recession.
Now it’s up on startups how can they use this period to be adaptive and innovative, in order not to just survive the current situation but flourish in its after-effects?
Recommendations for Startups in a Post Covid-19
The current picture for the startup’s ecosystem seems merciless, but here in Startups Opportunity, we have a few recommendations to see this period as an opportunity for reaffirmation and innovation.
- For startups companies looking for an investment this year, keep in mind that your growth rate is putrefied, your valuation may be negatively impacted, as investors evaluate the risks and macroeconomic issues. This is not an ideal year for you. But sectors which are doing well during coronavirus pandemic like edtech, health tech, communication have more power at the negotiation table with the investor.
- Create a best and worst-case scenario and prepare yourself for both. Every investor firm will tell you to not raise funding right now. So you need to evaluate the future scenario for example, what would the world look like after COVID-19, how will the customer buying power be impacted, and how will that impact your future product/service offering?
- Use this period as an opportunity to know your customer behavior. Deeper your customer research and understand the changing altitudes to better prepare for the post-covid-19 scenario. For example, in the current situation, costumers love to order online, online payment, and learning new technology.
How can you innovate or reinvent to adapt to these customers ’ changing attitudes? If consumer spending power may decrease, and you have a high-end luxury product, how can you lower costs or offer a mass-market version?
List of Startup Opportunities after Covid-19
Times are tough and only the tougher one will survive. If you survive the coronavirus pandemic and looking for startup opportunities after COVID-19, let’s take a look at the following sectors which would be beneficial for your business, keep reading here is the list of different startup opportunities after COVID-19.
Parents are afraid to send their children to school or college in the pandemic. So the Ed-Tech sector is tapping every possible entity they can. Online education, tutoring, and digital courses are the need of the time as the school and other educational institutes are not allowed to operate.
Governments are also looking for an alternative to conventional teaching and learning. The online education sector is observing a sudden flow during the Covid-19 lockdown. Online education is a suitable and more sustainable option for this time until we have a permanent cure for coronavirus.
2. Health and Wellness
The worldwide health emergency is in action due to pandemic, it’s a huge opportunity for startups in the health and wellness sector to grow and place itself as a prerequisite among the community. Health and wellness sector is already on the rise to becoming the one with the most growth prospective in the future.
The outbreak of coronavirus is more stressful for many people and it could be very difficult for people to deal with depression which comes with no outdoor activity. People are looking forward to anything that helps them stay healthy and fit. The demand for such things has risen so drastically in the quarantine period during the pandemic lockdown.
3. Financial Services
One thing is unavoidable in the after COVID-19 is an all-time economic low. Businesses would be beached with less or no cash reserves. Unemployment and health issues would make matters worse. In such times, regulated financial service providers have a crucial role to play.
People would run after the unsecured lending in these tough times. They would need funds against the least of collaterals and banking policies are strict in such a scenario. For the medium and small scale businesses to unemployed individuals and those who require funds on short notices, these financial services would be the only ray of hope.
4. Saas and Remote Working Tools
Saas and remote working tools have a high demand in the pandemic, because many employees were worked from home during a lockdown. Saas and remote working applications would serve the fundamental role in business operations in the future and a sigh of relief for the existing one.
It is the need of times while highlighting the current work culture to better productivity, these applications would help numerous brands across the world.
5. E-Commerce and Delivery Services
Due to the national lockdown imposed in various countries, social distancing is being practiced as the new normal for upcoming months, and people refraining from gathering up at markets, grocery stores, and public places, E-Commerce, and Delivery sectors are in high demands during these times. These services offer a safe and distanced way to ordered commodities.
The E-Commerce and Delivery Services industry was already on a growth trajectory. But the recent coronavirus pandemic just catalyzed the entire game to unprecedented levels.
6. Online Gaming and OTT Platform
With bans and restrictions on gaming hubs, movie theatres, and other recreational-amusement centers, these OTT platforms and the online gaming world had to fill in the gaps. These have proven to be cost & time-efficient, provide a more personalized version of the same experience and one can experience these at the comfort of home.
7. Pharma, Laboratory, and pathology
Pharma, life sciences and pathology sectors is another major sector that came out to be a winner after Covid-19. Once a vaccine for coronavirus is successfully developed, the shape of our current Pharma industry would change for good. Every single human being would require a dose and it will make a huge fortune.
8. Managed office spaces
Another sector that would rise above the rest is the managed office spaces for startups, commercial real estates, and corporates. With the prevailing wave of remote working culture combined with businesses cutting costs aggressively, the need for cost-efficient, comfortable managed office spaces are observed.
The future is unpromising for most of us. Economies are uncertain for growth, widespread unemployment another major issue for the upcoming months but not for the above-mentioned sectors and industries. These are the main startup opportunities after Covid-19.