OGSCapital Reviews the Impact of COVID-19 on Startups in 2020

OGSCapital lays out an in-depth analysis of the market devaluation and boom among numerous industries amidst the COVID-19 pandemic in 2020. The comparative analysis of the month shows startling insight and unexpected opportunities. Although the pandemic’s impact has been detrimental to many industries across the globe, startups can still capitalize on profitable opportunities to raise and advance funds in the upcoming 9-12 months.

Despite the pessimistic macro outlook of the world economic order, there are more business opportunities for startups than business owners realize. In fact, OGSCapital states that Delivery Businesses, Communications, Cyber Security Solutions, Health & Wellness, and eCommerce will see significant growth. Furthermore, the transformative trend of digitalization and production automation has paved the way for more business activities (i.e., sales and purchases).

Governments across the world will continue to set forth new financial support measures in loans, aid, and grants to impacted businesses. Interestingly, despite the uncertain economic turmoil, investors are broadminded to fun startups with a robust business model and can show positive results during the pandemic. OGS report insists that a 3% global GDP decline may have long-term consequences for the future of capitalism. Consequently, the decline in GDP is due to the constant national lockdowns that disrupt the supply chain in demand.

Source: IMF Microeconomic Data (April 2020)

OGSCapital clients that operate in Commercial Transportation, Retail Sector, Consumer Goods, Tourism, and Hospitality will suffer the most negative growth decline due to the COVID-19 pandemic. In addition, OGSCapital reviews that the current state of COVID-19 pandemic is changing the paradigm for pre-existing trends. Consequently, companies have no choice but to rethink their previous strategic plans.

The underlying purpose of businesses is to aim for digital transformation to bridge the gap in the supply chain and meet the market demands. It is a model that goes for restaurants, production processes, legal advisors, tax experts, professional accounting consultants, outpatient clinics, academia, and the retail sector. Thus, it makes sense that the investors increase their requirements to curb the pandemic’s added risk.

Evidently, startups should be aware that the parameters to raise funds prior to coronavirus were significantly different. Currently, investors want to invest in startups with an anti-crisis and continuity plan, attractive market outlook, a proven sales record, and optimal internal operations. Companies need to understand the need of the hour and build a sustainable business model with realistic and achievable business plans to ensure flexibility and resilience throughout the value creation chain.

The report notes the plausible government-funded measures to thwart coronavirus. Whether the financial support comes in the form of the CARES Act or Business Credit Availability Program, there will have to be a continuous effort by the federal governments. From US’ $2 trillion COVID-19 to Canada’s $300 billion bailout package, governments will have to offer additional support throughout the pandemic crisis.

The foundation of OGSCapital was laid in 2006. It consists of professional business plan writers and business consultants with extensive experience. As of now, OGS’ business plans have allowed businesses to garner more than $2.7 billion. OGSCapital continues to make business plans for companies to raise funds and achieve goals.

Reade full Report here.