More than eighty percent of Dutch tech start-ups will be without funding and cash flow after September if the COVID-19 crisis continues, according to a survey by a Netherlands government-backed firm.
Techleap.nl is a non-profit publicly funded organisation that monitors the tech sector in the Netherlands.
In its Covid-19 Impact Report, Techleap surveyed 445 start-ups and scale-ups (eight per cent of the total number of such firms in the Netherlands) about their challenges regarding the virus' impact on the market.
Initial findings show that thirteen per cent are already struggling to stay in business now; 42 per cent will have used their working capital within one to three months; and another third fears that they will be without any funds in six months.
Most founders responded saying they urgently need a bridging loan or other emergency aid in the short term, with figures ranging from "one hundred to four hundred thousand euros".
Techleap identified three key areas causing strain to the Dutch tech sector: delays in signing contracts by customers, difficulties in withdrawing money, and the loss of existing customers or business.
Each of those concerns outweighed fears about disruptions in the supply chain.
Currently, 85 per cent of the companies surveyed are actively cutting costs, and sixteen per cent have stopped developing all together.
Techleap is calling for government intervention directly targeting start-ups to prevent what it calls a "Dutch slow down".
The deadline for entries is this Friday - 20 March
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