BAKU, Azerbaijan, Apr. 29
Trend:
The coronavirus pandemic has contributed to the creation of a number of positive aspects for the startup business industry, Manager of Enterprise Azerbaijan website Oruj Dursunzade said.
“Paradoxical as it may sound, as history shows, big and successful companies are created after crises,” Dursunzade added, Trend reports referring to the Azerbaijani Center for Economic Reforms Analysis and Communication.
"In accordance with the reports, for example, from 2007 through 2009, more than 50 techunicorns were created during or after the crisis,” the manager said. “Moreover, more than half of the Fortune 500 companies were founded either during the crisis or when stock prices declined in the markets."
“In the current situation, a decrease or cessation of venture capital investment may testify to the fact that after the global crisis, many more companies will have the access to the big financing through the funds accumulated by investors,” Dursunzade added.
"In accordance with The Startup Genome reports for 2001, 2008 and 2009, we see that after the crisis, the number of companies established with the support of venture capital began to rapidly grow,” the manager added. “The pandemic gave an impetus to the activity of certain startups."
“Despite quarantine measures, medicine and telemedicine, food delivery, online education, remote work, game services, TV services, audio and video services and a number of other related spheres rapidly developed,” Dursunzade added. “The startups, online trading and delivery services continue to operate in the same way. There are also startup projects the profit of which is growing.”
“Flexible and socially significant startup projects are aimed at developing digital financial instruments for lending to small enterprises, new financial projects, online solutions to support the psychological health of people who are self-isolated, rendering direct or online services, as well as manufacturing inexpensive artificial respirators,” the manager said.
“To help counter the spread of the COVID-19 in the world, startups are constantly working with the countries to find innovative solutions," Dursunzade added.
