Startups are the lifeblood of a dynamic, entrepreneurial economy. Unfortunately, however, the COVID-19 pandemic is threatening the survival of thousands of startups, both in the UK and around the world. In April, research by policy advisory firm Startup Genome found that 41% of startups globally had three months or less of cash runway left.In a recent videoconference, members of CIMA and the Association of International Certified Professional Accountants who work for — and with — startups shared their perspectives on COVID-19 and its implications. The main themes to emerge included:Raising funds can be a significant challenge for startups, especially those that are not currently generating revenue. Many startups initially rely on funding from friends and family. As they grow, they typically apply for capital from other sources, which requires them to construct a business case and meet specified criteria in relation to their financial results and how any potential funding is...
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