LaunchVic chief executive Dr Kate Cornick says investing in Victoria’s start-ups will help boost jobs and aid economic recovery.
The Deloitte report follows similar findings by policy advisory and research firm Startup Genome. It has released a series of reports during COVID-19 on the global start-up scene’s state of play.
It is estimated that the global start-up economy created $2.8 trillion in market value between 2016 and 2018. But that global economic value may be eroding.
One of Startup Genome’s reports released in May suggests that global venture capital funding has dropped by about 20 per cent since the onset of the crisis in December.
China, the first country hit by the coronavirus crisis, had a drop of over 50 per cent in funding relative to the rest of the world in January and February, and a slight March rebound revealed numbers still lower than pre-crisis levels.
Its report suggests that four out of every 10 start-ups globally are in what’s called the “red zone” — they have three months or fewer of cash runway, meaning if they don’t raise additional funds they will collapse.
In the post COVID-world, locking down investors has become even tricker.
Call for payroll tax cuts, innovation support
But not all start-ups have seen a detrimental impact because of COVID-19.
For some start-up founders, such as Alison Hardacre, the crisis has helped propel their business growth.
Ms Hardacre is the cofounder and co-CEO of Halaxy, a digital transformation platform for health practitioners.
The platform allows practitioners such as dermatologists, mental health professionals, GPs and surgeons to digitally process patient bookings, records and payments.
Ms Hardacre said the health industry had been talking about a move to telehealth for about a decade.
In March, when COVID-19 social distancing hit, there was an instant shift.
“In February 99 per cent of all medical appointments made on our platforms were for face-to-face visits,” she said.
“In March, we had to move all of them on to telehealth. Our practitioner base grew from 42,000 to 45,000 between the end of February [and the] end of May.
Halaxy’s Alison Hardacre says telehealth is taking off post-COVID19.
“And what we’re seeing is existing practitioners also using more of our cashless payments features than they previously were.”
Ms Hardacre says government initiatives such as payroll tax cuts and more support for innovation will be crucial in supporting jobs during the post-COVID19 recovery.
Mr Merriman also hopes that state and federal governments will help support the sector over the long-term.
For him, the impact of COVID-19 on his business was harsh and immediate.
“During March and April we saw an 80 per cent reduction on our platform,” Mr Merriman said.
Real Life. Real News. Real Voices
Help us tell more of the stories that matter
Become a founding member
“We had to reduce our workforce down to 60 per cent capacity, with most people now working three days a week.”
For now, a return of some sports and small community-run events could help Rosterfy’s business pick-up.
Subscribe to the newsletter news
We hate SPAM and promise to keep your email address safe