BAKU, Azerbaijan, April 28
By Sadraddin Agjayev - Trend:
The global economy of startup projects is experiencing a shortage of investments, Oruj Dursunzade, Manager of the Enterprise Azerbaijan portal of Azerbaijan’s Center for Analysis of Economic Reforms and Communication (CAERC), told Trend on Apr. 28.
The global economy of startup projects in 2016-2018 alone amounted to $3 trillion, and under the influence of a COVID-19 pandemic, it has shrank by billions, the portal’s manager added.
A recent report by the Startup Genome, the world-leading innovation policy advisory and research firm, has already voiced forecasts for this sector related to determining the effects of the pandemic, Dursunzade said.
He noted that the COVID-19 pandemic originated in China, and this sector was most affected there. From December 2019 through February 2020, venture capital investments in China sharply declined by more than 50 percent compared to other countries.
The manager said that if the downward tendency in the world continues, then this year alone in the startup system there may be lacking some $28 billion worth of investments.
“Moreover, according to the DealRoom report, European technological and internet companies have lost about $400 billion since January 2020. In order to avoid the global negative consequences of the pandemic, discussions are being held on the form of public and private support of startups that are experiencing difficulties,” said Dursunzade.
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