Australia Startup funding in Australia sees 50% dip, as investors remain cautious during COVID-19

09:45  29 october  2020
09:45  29 october  2020 Source:   smartcompany.com.au

'We won't break the law': Burnham would accept Tier 3 if imposed on Greater Manchester

  'We won't break the law': Burnham would accept Tier 3 if imposed on Greater Manchester Andy Burnham says he will keep to the law and "accept" Tier 3 coronavirus restrictions for Greater Manchester if the government imposes them. The region's mayor told Sky News it was ministers' "prerogative" to announce the measures, if negotiations over the next few hours end in stalemate.He and other local leaders have been given until midday today to reach an agreement on moving three million people into England's highest band of coronavirus controls.

Individual investors have never been more worried about a U.S. stock market crash. This counterintuitive reaction is because investor sentiment is Gilead Chief Commercial Officer Johanna Mercier said that although the United States saw a surge in COVID - 19 cases over the summer, many

Covid - 19 has had a major impact on the startup ecosystem. Impact 50 : Investors Seeking Profit — And Pushing For Change. Existing startups need to evolve towards post-Covid futures where technology innovation and digital experiences will be even more instrumental to business success.

The volume of startup funding deals in Australia is trending down again, with a total of 64 funding deals recorded in Q3 2020. That’s almost 50% down on the same period in 2019, when 124 deals were recorded.

a man wearing a suit and tie: Benjamin-Chong-startup-funding © Provided by Smart Company Benjamin-Chong-startup-funding

According to Right Click Capital’s quarterly Internet Dealbook report, there were also fewer large deals compared to last year, with the total value of deals plummeting from $910 million to $387 million.

To be fair, Q3 2019 included Judo Bank’s $400 million raise, which skews the figures a tad. The biggest windfall recorded in Q3 2020 was Airwallex’s $56.5 million raise at the end of September.

Hungary's Orban under fire as virus second wave bites

  Hungary's Orban under fire as virus second wave bites Hungary's Orban under fire as virus second wave bitesA spike in the number of COVID-19 cases in some European countries has sparked fears of a second wave of infections. The countries include Albania, Bulgaria, Czech Republic, France, Germany, Italy, Montenegro, Netherlands, North Macedonia, Poland, Spain, and the UK. The European Centre for Disease Prevention and Control (ECDC) stated that between Sept. 29 and Oct. 4, the daily case numbers in the European Union and the UK reached record highs of more than 71,000 infections. Several restrictions have been imposed in major cities to curb the uptick in the cases.

A survey by the UK's most prominent investors has some surprising findings about the impact Covid - 19 is having 39% of business-to-consumer startups have seen March revenues drop by over 50 For startups expecting it to be hard to raise their next round of funding and struggling to access

In Australia , the ASX 200 was up 0.31%, boosted by the higher-than-expected rise of The surging second wave of COVID - 19 cases in Europe and the U.S, as well as the economic impact “ COVID - 19 case numbers and hospitalizations continue to rise … these will continue to be closely watched as

That also meant the average deal size dipped from $9 million to $8.4 million, although, as we explored when analysing the Q2 dealbook results, that’s not necessarily a bad thing.

There was a relative burst of activity during July, with 31 funding deals completed, compared to 39 last year. That’s the most deals recorded in any one month in 2020 so far.

This followed June 2020’s total of 20 deals, down significantly on the 38 deals recorded in June 2019.

But the following months saw the funding slump return, with only 15 deals recorded in October and 18 in September. That’s compared to 36 and 49 deals in the same months in 2019, respectively.

In 2020 so far, the Internet Dealbook report has recorded 180 funding deals in Australia. At the same time last year, the total for 2019 stood at 313.

Scotland extends coronavirus restrictions as nation heads for new tiered system

  Scotland extends coronavirus restrictions as nation heads for new tiered system Coronavirus restrictions in Scotland are being extended for another week, taking the nation into a new tiered system. First Minister Nicola Sturgeon said details of the new system will be published on Friday and the measures will be implemented from 2 November.Restrictions put in place two weeks ago on hospitality businesses had been due to end on 25 October.The measures have also forced the closure of snooker and pool halls, indoor bowling, casinos and bingo halls in the central belt.

Coronavirus ( COVID - 19 ): Relief options and Additional Resources. CLICK HERE. Skip to main content. Paycheck Protection Program. An SBA loan that helps businesses keep their workforce employed during the Coronavirus ( COVID - 19 ) crisis.

Start your business in 10 steps. See the guide. Funding Programs. Go to Next Section. To learn more about the relief options available for your business, click here. COVID - 19 EIDL Loan If an employee is confirmed to have COVID - 19 , employers should inform fellow employees of their possible

chart, bar chart © Provided by Smart Company

Disappointing, but not disastrous

Right Click Capital partner Benjamin Chong called the quarter’s result “disappointing”.

He notes the continuing COVID-19 crisis, which may have investors avoiding particular industries, thereby reducing the pool of investable businesses.

“Some investors may be standing on the sidelines, possibly turning away from opportunities that may be pandemic-impacted, and focusing their efforts on new opportunities that are less affected,” Chong says.

“For such investors, it can take time to align on desired trends and build relationships with founders.”

Chong also suggests we may still be seeing investors focusing on supporting the businesses in their existing portfolios, ensuring they’re in a position to survive, and so holding off on new investments.

It’s notable that Q3 2020 played host to the worst of Melbourne’s second COVID-19 lockdown, which may have affected deal flow in Victoria.

Ex-footy blows up after delayed the re-opening of Melbourne

  Ex-footy blows up after delayed the re-opening of Melbourne Paul Dimattina, a former Western Bulldogs AFL player, has slammed Mr Andrews as 'a liar' and called for the Victorian Premier to end Melbourne's draconian lockdown.Paul Dimattina, a former Western Bulldogs AFL player, called the Victorian Premier a 'liar' after he delayed ending Melbourne's COVID-19 lockdown.

Paid COVID - 19 leave for public sector workers. If you work in Western Australia 's public sector, you will benefit from the introduction of 20 days paid COVID - 19 leave. Who should present to COVID - 19 clinics? People who have EITHER a fever of 38 degrees Celsius OR acute respiratory infection.

COVID - 19 : Impacts to business. As well as serious implications for people’s health, COVID - 19 (coronavirus) is significantly impacting businesses and the Identify the financial and operational levers that can be pulled to conserve and generate cash, and potentially increase access to funding .

Still, the numbers are still higher than what we were seeing in March and April.

This perhaps reflects the success in controlling the virus in other Aussie states, Chong says. But his positivity also comes with a warning.

“A third wave and further shuttering of the economy may change this moving into Q4 and 2021.”

But, it’s not all doom and gloom.

Chong says he has noticed a tentative return of angel investors to the market, who are “demonstrating an appetite to invest in early-stage technology companies, particularly SaaS”.

He also notes that it’s very possible more deals have been finalised, but that both startups and investors are holding off making the news public.

Whether they’re waiting for a more stable market, or until they’re ready to hire new people, or make a big move, that could mean the balance is redressed somewhat in Q4.

“Given current conversations with founders and investors, we expect Q4 will be a more buoyant quarter,” Chong says.

The post Startup funding in Australia sees 50% dip, as investors remain cautious during COVID-19 appeared first on SmartCompany.

England's month-long lockdown could be extended, says Michael Gove .
England's month-long lockdown could be extended beyond 2 December if necessary, cabinet minister Michael Gove has told Sky News. Speaking to Sophy Ridge on Sunday, the Tory frontbencher also defended the delay in reintroducing the nationwide restrictions, which had been called by the government's own scientific advisers back in September.Tougher action was needed now because the "situation has been worse than any of us expected" and threatened to overwhelm the NHS, said Mr Gove.

usr: 1
This is interesting!