News - April, 2020
No one can tell yet what the impact of Covid-19 on our health, our society and our economy will be. Without doubt it will have a tremendous impact on European technology. However, we believe companies and investors will emerge stronger than before.
Covid-19 will likely push the global economy into recession
In order to suppress the virus and to flatten the curve of infection public life in Europe and elsewhere has been paused since mid-March. Large parts of the economy have stopped operating or slowed down substantially which will push the economy into a sharp recession. At this point, it’s not clear how long the recession will last and how quickly the economy will recover. It can be short-lived, but it might well be a recession as severe as the Global Financial Crisis in 2007–08.
Certainly, this recession will have a tremendous impact on the European tech ecosystem. Companies will fail and investors will withdraw or default. But these are the times where lasting businesses are built — in technology and in investment...