Headed into 2020, startups accustomed to years of plentiful venture capital faced leaner times. Then came the coronavirus pandemic.
The paralysis in travel and business caused by efforts to contain the disease has proven too great a stress test for some companies, especially ones that rely on the travel and hospitality industry. Startups like Hipmunk and Service shut their doors this quarter after efforts to extend their capital lifelines fell through. With the U.S. headed into recession, more are likely to follow.
Image: Coronavirus has led to further tightening of venture capital for startups. © 2020 BLOOMBERG FINANCE LP
