As the lockdown commenced, we began interviewing founders to understand how they are coping with the crisis brought on by the Covid-19 Global Pandemic. A travel startup experiences the intensity of the crisis very differently than a startup focused on digital health services, but still, there are strong themes common to how startups survive crises.
This documentary brings together 7 interviews we have conducted with founders and thought leaders in the London Startup Ecosystem.
Philip Mundy, Pando Health
Michael Krayenhoff, Inner Circle
Tom Previte, Launch 22
Jacob Wedderburn, Stasher
Anthony Rose, Seedlegals
Andrew Bud, iProov
Alexander Fahie, Ethical Angel
The 5 common themes/principles we observed are:
1. There is an inherent tension between agility and fragility, just like some systems become less resilient as they become more efficient, startups are very agile which works in their favor, but they are at the same time very fragile due to the nature of how chasing next rounds of funding work.
2. The argument that has been embraced by most startups is that of "half the burn rate to double the runway". While this makes sense for many, it creates second-order effects that are difficult to navigate. Many startups rely on other startups as their customers, not to count the consultants and other service providers that work around startups.
3. There are always bubbles of opportunity and they act like pockets of air in what is otherwise a deep ocean of problems. Finding those bubbles mean prioritizing short term ROI rather than the long term. Survival in times like this might depend more on commercial cunning then focusing on innovation with a possible future return.
4. The idea that startups should be "Pivoting for new needs" has also gathered a consensus. Some startups pull this off better than others and it comes down to the team itself. We love paying lip service to people and culture, but it usually remains a second or third priority. However, times like these test startups and teams, and only those who invested in culture thrive.
5. The next chapter is that of a new normal. We don't exactly know what it will look like, but as startups can piece together what the future will look like they will be able to afford more risks and invest more heavily into the future.
0:00 Start
0:31 Intro
01:40 Fragility vs Agility
13:14 50% Burn Rate, 200% Runway
20:20 Bubbles of Opportunity
26:16 Pivot for New Needs
40:41 Beginning of a New Game