Startups in Greece are faced with a harsh reality as the coronavirus contraction will not only bring their turnover down to zero for some time but also threaten their very sustainability.
As time goes by, startups are seeing that they only have a few months’ worth of capital reserves, while their access to financing will be limited as even venture capital funds are redrafting their strategies. Word on the market is that local funds have – at least for the coming months – taken companies active in the tourism and mobility sectors off their radars, given that both appears quite fragile.
At the same time, small companies such as GuestFlip, as well as bigger ones with an international presence like Blueground, are seeking out ways to respond to the challenges of the new environment, proceeding to a permanent or temporary suspension of some of their workers’ contracts.
In recent days, representatives of startups and venture capital funds have asked the state for more targeted measures along the lines of those in France, Britain, Germany and Spain, arguing that there are significant differences between startups and established small and medium-sized companies in Greece.