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Impact of Pandemic on Start-ups
Why is it in news?
- According to a report, about 15% of start-ups in India had to discontinue their operations since March, due to the impact of pandemic and lockdowns.
Details:
- The overall funding of start-ups dipped by about 50% during the lockdown as compared to pre-COVID levels.
- The report noted that India exited 2019 as the third largest start-up ecosystem in the world with more than 38,000 active start-ups and receiving $14.5 billion in funding.
- In the second quarter of 2020 (April-June), the total funding declined 48% to $1.3 billion as against $2.5 billion in the same quarter last year.
- However, the report expects a good pace of recovery in terms of demand once the economy opens.