BAKU, Azerbaijan, April 29
By Sadraddin Agjayev - Trend:
In accordance with a report prepared by the US CB Insights platform, financing of private companies in Asia will slow down amid a global pandemic, Enterprise Azerbaijan website manager Oruj Dursunzade said, Trend reports referring to the Azerbaijani Center for Economic Reforms Analysis and Communication.
“Despite the joint efforts of the governments, communities and organizations worldwide to prevent the spread of the pandemic, COVID-19 also damaged the startup ecosystem,” Dursunzade added,
“Even such huge startups as Airbnb also suffered losses,” the manager said. “This rental housing startup worth $31 billion suspended staff recruitment and froze an $800 million marketing package.”
“As a result of applying the quarantine measures and self-isolation rules worldwide, almost all start-ups related to the offering of products and services suffer great economic damage," Dursunzade said.
"Many young technology companies create their own financing tools in the US,” the manager added. “Over the past 10 years, the startup movement has attracted huge investments. However, investors have recently refused to invest in this movement."
"While observing the activity of startups, CB Insights emphasizes that in the first quarter of 2020, startup financing is experiencing the second biggest rate of decline over the last 10 years," Dursunzade added.
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