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PRESS RELEASE: Governments should support startups in the covid-19 economic downturn

March 23, 2020

[Brussels, 23 March 2020, contact: ines@alliedforstartups.org] Allied for Startups encourages governments and international organisations to take measures to support startups in the ensuing coronavirus economic downturn.

The health and safety of citizens during these difficult times should be the priority of governments and startups. 

Looking into the future, an economic downturn is foreseeable. Startups have much potential, but they are also smaller and more fragile economic actors. By definition, they have less cash flow and fewer resources to stay afloat in an economic recession. “Startups will be a litmus test of the overall effect of the covid-19 outbreak on the economy. If startups run into liquidity issues, SMEs and bigger businesses could follow” said Benedikt Blomeyer, EU Policy Director at Allied for Startups. Allied for Startups is crowdsourcing a covid-19 startup toolbox, to share measures and best practices. 

Startups create jobs three times faster than other economic players. They provide innovative solutions to some of the world’s big problems. As the covid-19 crisis hits markets across the globe, innovative startups resolve issues from health to remote-work to communications. 

It will be crucial that governments and international organisations identify startups as key players in their long-term plans for economic growth. “Investment in startups is precisely what will be needed to kickstart the global economy after the covid-19-induced economic trough” said Blomeyer. 

Allied for Startups is a worldwide network of over 40 advocacy organisations focused on improving the policy environment for startups. Our mission is to ensure that the voices of startups are heard in government. For more information on Allied for Startups including a full list of our network, visit the website at www.alliedforstartups.org