Asian startups face cash crunch as COVID-19 cuts off funding

Asian startups face cash crunch as COVID-19 cuts off funding

REUTERS/Beawiharta

Saving cash has become the new mantra for startups in Asia as capital quickly dries up in the region.

Funds raised by Asia-focused venture capital firms fell to a seven-year low of $2.2 billion in the first quarter, according to U.K. data provider Preqin. Investors are now urging startups to save enough money to support their business for at least a year in anticipation of a prolonged economic downturn brought on by the coronavirus pandemic.

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