Six words Lars Reiner, to describe the location of his company. "We're not bored, on the contrary." Reiner is the founder and head of the Frankfurt financial Start-ups Ginmon, and his testimony is in these days is quite unusual. Because as well as billion-dollar corporations and established medium-sized companies, young companies of the Corona are affected by the crisis. The Situation there is a dramatic: Depending on the poll, between 50 and 70 percent of the founders say they are extremely concerned because of Corona limitations and their impact.
by Daniel Schleidt
editor in the Rhein-Main-Zeitung.F. A. Z. Twitter
In the case of Lars Pure the is a bit different. "We have grown despite the crisis, consistently," he says. The company, five years ago, in Frankfurt founded, promises its customers an automated, low-cost investment strategy using exchange-traded funds. Because of the turbulence on the stock market at the beginning of the Corona-crisis, this ETF Fund, the value of lost. "But a lot of people have then introduced a free money, because the shares were inexpensive," says Lars Pure. Exact Figures as to sales and customer Ginmon not price, according to Reiner, it has grown since inception, each year an average of 50 percent. In the meantime, the company assets of around 100 million euros managed.
The investors hesitate
not So rosy as in the case of Ginmon the future is not in the case of most other young companies. Because for them, due to the Covid-19-pandemic, equal to two serious problems: firstly, many business collapse models. For example, the restaurant chain Coa was in October 2019 insolvent was no longer save, due to closed Restaurants and ongoing costs. Add to this, secondly, that many Start-ups make in the first few years, no money and, therefore, on financing rounds are dependent. However, this money does not flow as prior to the Corona.
"We hear again and again that companies from the Region, currently difficulties to get venture capital," says Thomas Funke, the Director of the incubator's Tech headquarters in Frankfurt.Studies confirm this impression. So the world's Investments until the end of April declined, according to a study of the portal "Start-up Genome" by 20 percent, four out of ten young companies had according to this survey, only money for a maximum of three months. Funke says, is a problematic development was completed, especially for Start-ups in the growth phase, which is set so that the first employee, a business model, and perhaps a first round of financing, but more want to invest. They have high ongoing costs and generally low revenues. Without fresh money, this threatens to be fatal. "Particularly companies, which were on the verge of a round of financing, had bad cards," says Funke. The Berlin-based Start-up had been drawn back a thousand child, despite over a Million customers and 50 million euros turnover, is one of the first prominent victims of the crisis, because a financial investor syringe, a capital in the short term.
The Virus has been responsible for unrest in the Venture Capital market, on the money of frolicking donors, the hopeful start-UPS to invest and a lucrative sale to hope. Yet last year this money had been put donor in the world 257 billion dollars in Start-ups, in Germany, the Investments of a study by the consulting firm were EY, according to comparatively low at 6.2 billion euros.
Deals on Six-year Low
But now many investors are confused due to the turbulence in the capital markets. The data provider Refinitiv has calculated that the number of investment rounds in Start-ups fell in the first quarter. Therefore, to have been completed between January and March, with 22 Deals for a total amount of 344 million Euros, it means - that would be so little in six years more in this period. In the previous year, were made at the same time, 54 transactions, which had contributed EUR 1.4 billion.Updated Date: 13 July 2020, 09:20