Startups heavily affected by impacts of Corona crisis

April 30, 2020

Startups and scale-ups are experiencing major consequences of the corona crisis. A TechLeap survey last month found 80 percent of startups expected to get into financial trouble due to the corona crisis. Over two thirds are looking for bridge financing due to liquidity problems. 55 percent of the startups see the demand disappearing because existing customers withdraw or because new customers stay away.

Up to now, startups have been largely outside the arrangements made by the government to mitigate the consequences of the corona crisis. For example, the most important emergency measure, the wage support via the NOW, only companies that are affected by a fall in turnover of at least 20 percent are eligible, while growth companies mainly incur a lot of costs, but either have no turnover or grew tens of percent compared to 2019.

The government is making available 100 million euros for bridge loans to start-ups and other “innovative SMEs”. These loans will be provided through the regional development companies (ROMs, such as InnovationQuarter, BOM and NV Oost), and are intended for “innovative companies that have run into financial difficulties due to the Covid19 crisis”. From 29 April, startups and scale-ups can apply for this bridge loan. Investors and startups speak of “a first step”. Read more in Dutch: