In an effort to support the community of early-stage founders, Angular Ventures surveyed 128 founders in Europe, Israel, and the United States. We asked them how the Coronavirus has impacted their businesses and how they are responding. This report is the result of that work.

1. May 7, 2020
Coronavirus:
Impact & Response
A global survey of early-stage technology founders

2. May 7, 2020 2
Gil Dibner
Partner
gil@angularventures.com
@gdibner
LON/TLV
Anne Blum
Head of Platform
anne@angularventures.com
@anneablum
NYC
Andrew Poesaste
Associate
andrew@angularventures.com
@poetential
LON
Angular Ventures is a venture capital fund based in London, Tel Aviv, and New
York that backs early-stage enterprise tech companies from Europe and Israel. We
typically invest between $250K and $1.5M anywhere from “day zero” to Series A.

3. May 7, 2020 3
“I believe, or perhaps hope, that the VC industry will take what I consider to be a more mature
approach to financing startups, with less talk of unicorns and more focus on making
ventures economically sustainable. Those ventures with the capacity for stunning valuations
will retain that capacity, but all ventures will carry lower risk as a result.”
CEO, UK proptech company
“My concern is the influence on 2021-2022 customers budgets and priorities. We have
been growing organically 2.5x each year in the past 3 years, we now expect this growth to be
slowed.” CEO, Israeli drone company
“Corporates and start-ups will adjust to this new normal. Selling over video-calls already
worked, but now is necessary. Same for fundraising. The faster everybody adjust to the
new normal, the less impact Covid19 will have to the economy. Big corporates are all
saying: it's business as usual but adjusted to the new normal.” CEO, Dutch SaaS company
“Our current strategy is to stay alive by any means possible and be top of mind for when
customers are ready to buy again.” CEO, Romanian edtech company
“Overall, I'm cautiously optimistic about our chances of survival, it’s looking likely we could
thrive. If we can raise sometime in the next 6 months, I believe we could dominate the space.”
CEO, UK transportation company
In an effort to support
the community of
early-stage founders,
Angular Ventures
surveyed 128 founders
in Europe, Israel, and
the United States.
We asked them how
the Coronavirus has
impacted their
businesses and how
they are responding.
This report is the result
of that work.

4. May 7, 2020 4
Founder, 97%
Survey demographics
34%
30%
17%
14%
5%
1%
1-5
6-10
11-20
21-50
51-100
Over 100
Number of employees
Europe, 37%
UK, 29%
Israel, 23%
USA, 6%
Other, 5%
84%
4%
2%
2%
2%
2%
5%
CEO
CTO
COO
VP Eng.
VP Mktg / CMO
VP Sales / CRO
Other
Job title
16%
23%
36%
20%
2%
4%
Pre-revenue
Early POC revenue
Less than $1M/year
$1M-$5M/year
$5M-$10M/year
$10M-$25M/year
Revenue level
12%
34%
39%
11%
3%
2%
None Pre-seed / angels Seed Series A Series B or later Other
Funding stage

5. May 7, 2020 5
Contents
1
2
3
4
5
6
Concern & resilience
Fundraising & runway
Top-line impact
Product considerations
Marketing strategy
Human capital
45% of founders are not confident their
startup will survive the recession
53% of companies have 12
months or less of runway
58% of founders are already seeing a
negative impact from Coronavirus on sales
47% of founders are changing their product
offering in response to Coronavirus
55% of companies are eliminating or reducing
the marketing spend
51% of companies are implementing pay cuts

6. May 7, 2020 6
Coronavirus Impact Survey:
Concern & resilience

7. May 7, 2020 7
Coronavirus
Impact Survey
Fears & concerns
• As a group, most founders are
more concerned about the
impact of the pandemic on the
economy (81%) than they are
concerned about the virus itself
(13%)
• 55% of founders we surveyed
are confident their company
will survive the recession
• 9% of founders are very
concerned that their company
won’t survive the recession
81%
13%
6%
More concerned about COVID-19 or
its impact on the economy
COVID-19's impact on the economy
COVID-19
Neither
55%
37%
9%
Concern of startup's survival
during recession
Not worried, startup will survive this recession
Somewhat worried startup won't survive this
recession
Very worried startup won't survive this
recession

8. May 7, 2020 8
Coronavirus
Impact Survey
Does revenue buy
resilience?
• Early stage companies that are
pre-revenue or in early POC
stages seem to be the most
concerned about survival
• There is also a high level of
concern among substantially
more mature companies,
perhaps due to a higher cost
basis
“We're pre-product market fit. We can't
iterate and improve without customers and
feedback. Any leads we had, have gone
cold. I think this has killed us.”
- CEO of a UK SaaS pre-seed company
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Pre-revenue Early POC revenue Less than $1M/year $1M-$5M/year $5M-$10M/year $10M-$25M/year
Concern level by revenue level
Not worried, startup will survive this recession
Somewhat worried startup won't survive this recession
Very worried startup won't survive this recession

9. May 7, 2020 9
Coronavirus
Impact Survey
Most common
concerns
• Out of the major concerns
listed, fundraising was the
most frequently cited (58%) by
founders
• Declining sales (46%) and
changing customer priorities
(38%) completed the top three
concerns
“We were just about to close our pre-seed
round when the virus arrived. All of our
investors went cold and have pushed
conversations with us out by 4-6 months.”
- CEO of an Irish analytics company
58%
46%
39%
25%
15%
9% 9%
3%
Fundraising in this
environment and
running out of
cash
Declining sales Customers
deprioritizing
startup's solution
Team moral Reduction in
employee
productivity
Pressure to reduce
pricing
Disappearance of
marketing
channels
Layoffs
Top concerns
(up to three selected)

10. May 7, 2020 10
Coronavirus
Impact Survey
Back to normal?
• 43% of survey respondents
believe things will be back to
normal by the end of 2020
• 59% of founders expect things
will be back to normal by
March of 2021
• 11% of founders believe things
will never return to normal
“While I expect in one year life will feel
normal again, I expect the recession to take
at least two years to overcome.”
- CEO of an American hospitality company
1%
21% 21%
16%
13%
7% 7%
4%
11%
April to June
2020
July to
September
2020
October to
December
2020
January to
March 2021
April to June
2021
July to
September
2021
October to
December
2021
Sometime in
2022 or later
Never
Expectation for when things will "return to normal"

11. May 7, 2020 11
Coronavirus
Impact Survey
Optimism is not
equally distributed
• UK founders are the most
pessimistic - only 48% stating
things will return to normal by
March 2021
• American founders are the
most optimistic
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
UK Europe Israel USA
Expectation for when things "return to normal" by region
Never
Sometime in 2022 or later
October to December 2021
July to September 2021
April to June 2021
January to March 2021
October to December 2020
July to September 2020
April to June 2020

12. May 7, 2020 12
Coronavirus Impact Survey:
Fundraising & runway

13. May 7, 2020 13
Coronavirus
Impact Survey
Fundraising slowdown
• Venture investment in Europe
and Israel in 2020 started at
the highest pace on record for
January and February – both
were record months
• In March, as the effects of
Coronavirus became clear, the
pace of investment started to
drop off and dipped below last
year’s levels
3,489
2,842
2,870 3,037
3,560
4,394
3,889
2,852 2,831
3,651
3,583
1,904
3,755
3,398
2,436
2,611
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Number of VC Investments
(US $M, Europe & Israel)
2019 2020
Source: Angular Ventures Data

14. May 7, 2020 14
Coronavirus
Impact Survey
VC deals keep steady
• Although the total investment
amounts slowed in March and
April, the number of deals done
actually remains above last
year’s levels
Source: Angular Ventures Data
182
157
154
184
194
197
218
103
194
228
180
152
197
213
174
194
100
120
140
160
180
200
220
240
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Number of VC Investments
(Europe & Israel)
2019 2020

15. May 7, 2020 15
0
50
100
150
200
250
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
2017 2018 2019 2020
US$M
Total VC Investment Volume
(Europe & Israel)
Total volume of investments (US $M) Number of Investments
Viewed over a longer time
horizon, the first part of
2020 is still looking
relatively strong.
This picture does not
match what many
founders are seeing in the
field. Why not?
Part of the reason is the
long lead time.
Investments concluded in
March or April may have
been sourced in January or
February, well before the
scope of the Coronavirus
slowdown became clear
Source: Angular Ventures Data Source: Angular Ventures Data

16. May 7, 2020 16
Coronavirus
Impact Survey
Into a new era
• 1Q20 saw the lowest annual
growth rate in quarterly VC
investment volume across
Europe & Israel in over three
years
• This comes after two distinct
periods of acceleration (in 2017
and 2019)
• VC investment in April 2020
was down 14% from April 2019,
a figure that doesn’t bode well
for 2Q20 activity
9.3%
40.1%
79.7%
39.8%
43.2%
12.7% 11.2%
32.5%
57.7%
69.2%
53.7%
40.4%
3.5%
-14.0%
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 April 20
VC Investment, YoY growth rate by quarter
(Europe & Israel, US $M)
Source: Angular Ventures Data

17. May 7, 2020 17
Coronavirus
Impact Survey
Runway is everything
• Roughly half of early stage
companies surveyed have 12
months or less of runway, not
surprising given that most raise
for 18 months
• 37% have 12-24 months of
runway
• Only 8% are cash-flow positive
25%
28%
17%
20%
2%
8%
1 to 6 months of
runway
7 to 12 months of
runway
13 to 18 months of
runway
19 to 24 months of
runway
More than 2 years of
runway
Positive cash flow
Current runway (in months)

18. May 7, 2020 18
Coronavirus
Impact Survey
Runway drives
perceived risk
• Not surprisingly, shorter
runways lead to higher levels of
concern
• Concern among positive cash
flow companies may reflect
companies operating on thin
margins
“I largely think the crisis will make life
harder for startups. Having said that, I think
the startups that will be most affected are
startups that have immediate cash flow
concerns and that are in a scaling phase.”
- CEO of a UK construction pre-seed company
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 to 6 months of
runway
7 to 12 months of
runway
13 to 18 months of
runway
19 to 24 months of
runway
More than 2 years
of runway
Positive cash flow
Concern level by runway
Very worried startup won't survive this recession Somewhat worried startup won't survive this recession
Not worried, startup will survive this recession

19. May 7, 2020 19
Coronavirus
Impact Survey
Runway lengthening is
an active process
• Companies with longer
runways typically engaged in
aggressive cost-cutting to
achieve that runway
“As an early stage startup in high corona
impact industry, we have to extend our
runway as much as possible. We made cuts
that would allow us to run for 24 months
with only hands on staff.”
- CEO of an American hospitality company
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 to 6 months of
runway
7 to 12 months of
runway
13 to 18 months of
runway
19 to 24 months of
runway
More than 2 years
of runway
Positive cash flow
Cost cutting by runway
No costs cut Cut costs but no meaningful impact on runway
Cut costs and added 1-3 months of additional runway Cut costs and added 3-6 months of additional runway
Cut costs and added 7-9 months of additional runway Cut costs and added 10-12 months of additional runway
Cut costs and added more than 12 months of additional runway

20. May 7, 2020 20
Coronavirus
Impact Survey
Big rounds help
• 54% of Series A companies
report 18+ months of runway
• For seed companies, that drops
to about 36%
• Only 16% of pre-seed
companies have over 18
months of runway
• 66% of pre-seed companies
have 12 months or less of
runway, and 40% have less
than six months 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
None Pre-seed / angels Seed Series A
Runway (months) by last round of financing
Positive cash flow More than 2 years of runway
19 to 24 months of runway 13 to 18 months of runway
7 to 12 months of runway 1 to 6 months of runway

21. May 7, 2020 21
Coronavirus
Impact Survey
Extending runway
• Across our group of
respondents, only 13% have not
taken any actions to extend
runway
13%
52%
46%
43%
30%
23%
17%
15%
14%
8%
6%
No changes made or planned
Reduced marketing spend
Hiring freeze
Reduced or eliminated office space/rent
Significant changes to the product roadmap and timing
Across-the-board salary reductions
Significant product changes
Termination of service provider contracts
Employee furloughs or unpaid leave
Increased use of outsourcing
Employee layoffs
Actions taken to extend runway

22. May 7, 2020 22
Coronavirus
Impact Survey
Modest impact of cost
cutting for most
• 88% of companies surveyed
have cut costs
• About a quarter of those that
cut costs failed to achieve any
meaningful impact on their
cash runway
• 11% of companies have been
able to cut costs to achieve
more than 6 months of
additional runway
18%
20%
28%
23%
5%
3% 3%
No costs cut Cut costs but no
meaningful impact on
runway
Cut costs and added 1-
3 months of additional
runway
Cut costs and added
3-6 months of
additional runway
Cut costs and added
7-9 months of
additional runway
Cut costs and added
10-12 months of
additional runway
Cut costs and added
more than 12 months
of additional runway
Cost cutting to extend runway

23. May 7, 2020 23
Coronavirus
Impact Survey
Fundraising strategy
• 17% of companies have begun
fundraising immediately to
ensure sufficient cash
• 28% of companies have
delayed their fundraising plans
in response to the pandemic
“We’re delaying fundraising and focusing
on being break-even.”
- CEO of an Israeli SaaS Series A company
17%
3%
5%
46%
17%
11%
Beginning fundraising
immediately to ensure
sufficient cash
Brought fundraising
earlier by more than six
months
Brought fundraising
earlier by less than six
months
Fundraising strategy
has not changed
Pushed fundraising
back by less than six
months
Pushed fundraising
back by more than six
months
Change in fundraising strategy

24. May 7, 2020 24
Coronavirus Impact Survey:
Top Line Impact

25. May 7, 2020 25
Coronavirus
Impact Survey
ACVs
• Companies in the survey had a
wide range of ACVs (annual
contact values): from under
$100/year to over $500K/year
• The most common ACV range
was between $10K/year and
$100K/year
• We also asked founders about
their go-to-market
methodology and assigned
each company to one of five
categories
7%
10%
21%
42%
16%
4%
Less than $100 per year Between $100 and
$1,000 per year
Between $1,000 and
$10,000 per year
Between $10,000 and
$100,000 per year
Between $100,000 and
$500,000 per year
Over $500,000 per year
Average contract value
29%
25%
23%
19%
5%
Self-service Inside sales Field sales Mixed (Inside & Field) Channel / Indirect
Go-To-Market models used

26. May 7, 2020 26
Coronavirus
Impact Survey
Impact on sales
• As expected, the majority of
respondents (58%) reported
that Coronavirus has
negatively impacted sales
• 19% reported that Coronavirus
has had a positive impact on
their sales
“Customers don't want to pay right now
even for vital services like rent, so they
definitely aren't even thinking to pay for
SaaS services.”
- CEO of an American hospitality SaaS company
8%
11%
23%
31%
27%
Sales have drastically
increased
Sales have slightly
increased
Sales have not changed Sales have slightly
decreased
Sales have drastically
decreased
Impact on sales

27. May 7, 2020 27
Coronavirus
Impact Survey
Sales cycle
• Many respondents reported
some negative impacts on
sales cycles
• 71% of respondents reported
either a partial or significant
slowdown in sales cycles
• 23% reported that customers
are “ghosting” them
• 20% reported that budget
priorities seem to be shifting
away from their offering
“Our entire pipeline of enterprise
customers is frozen.”
- CEO of a Romanian EdTech company
23%
36%
35%
20%
5%
15%
23%
Some customers
are disengaging or
ghosting
Significant
slowdown in aales
cycles
Some slowdown in
sales cycles
Deprioritization of
product
Some key customer
contacts have been
laid off
No impact on sales
cycles
Some customers
are now more
available
Impact on sales cycles

28. May 7, 2020 28
Coronavirus
Impact Survey
Churn & pricing
• 66% of respondents reported
that Coronavirus has not yet
had an impact on churn
• In the two months since the
Coronavirus emerged, nearly a
quarter of companies have
seen churn increase
• 36% of companies reported
some pricing pressure
• 5% reported “significant”
pricing pressure
3%
8%
66%
20%
3%
Churn has drastically
decreased
Churn has slightly
decreased
Churn has not changed Churn has slightly
increased
Churn has drastically
increased
Impact on churn
5%
31%
64%
Significant pushback on pricing Some moderate pushback on pricing from some accounts No pricing pressure
Pricing pressure

29. May 7, 2020 29
Coronavirus
Impact Survey
Sales motion matters
• Companies with strong
channel/indirect sales motions
are showing more resilience in
sales
“Hardware startups need face-to-face
meetings! Zoom doesn’t cut it for us.”
- CEO of an Israeli AgTech company
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Self-service Inside sales Mixed (Inside & Field) Field sales Channel / Indirect
Sales by primary sales motion
Sales have drastically increased Sales have slightly increased Sales have not changed
Sales have slightly decreased Sales have drastically decreased

30. May 7, 2020 30
Coronavirus
Impact Survey
Sales motion & churn
• Reports of increased churn
seem concentrated in
companies with sales motions
that emphasize self-service or
field sales
• This may reflect the difficulty
of rapidly spinning up an inside
sales operation which – today –
is the only way to effectively
engage with customers
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Self-service Inside sales Mixed (Inside & Field) Field sales Channel / Indirect
Churn by primary sales motion
Churn has drastically decreased Churn has slightly decreased Churn has not changed
Churn has slightly increased Churn has drastically increased

31. May 7, 2020 31
Coronavirus
Impact Survey
Churn concentrated at
mid-range prices
• While many companies are
reporting moderate increases
in churn, reports of dramatic
increases in churn seem highly
concentrated at the $1,000 to
$10,000 ACV price point
• This price point is large enough
to get noticed (and cut) by
distressed customers, but not
high enough to signal deep
customer commitment
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less than $100 per
year
Between $100 and
$1,000 per year
Between $1,000 and
$10,000 per year
Between $10,000 and
$100,000 per year
Between $100,000
and $500,000 per
year
Over $500,000 per
year
Churn by ACV
Churn has drastically decreased Churn has slightly decreased Churn has not changed
Churn has slightly increased Churn has drastically increased

32. May 7, 2020 32
Coronavirus
Impact Survey
More money, more
problems
• The higher the ACV, the more
likely a company is to report
pricing pressure
• Interestingly, there is also
significant pricing pressure
being reported by the sub
$100/year ACV companies
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less than $100 per
year
Between $100 and
$1,000 per year
Between $1,000
and $10,000 per
year
Between $10,000
and $100,000 per
year
Between $100,000
and $500,000 per
year
Over $500,000 per
year
Pricing pressure by ACV
No pricing pressure
Some moderate pushback on pricing from some accounts
Significant pushback on pricing

33. May 7, 2020 33
Coronavirus Impact Survey:
Product evolution in
response to crisis

34. May 7, 2020 34
Coronavirus
Impact Survey
Product changes
• 47% of early stage companies
are taking steps to change
their product offerings in
response to the Coronavirus
“We added cheaper, more self-service
oriented options to our original enterprise
only product.”
- CEO of a German FinTech company
53%
26%
21%
Product has not changed Changes to the product are planned Product has already changed
Product changes

35. May 7, 2020 35
Coronavirus
Impact Survey
Everyone is changing
their products
• Companies of all stages are
adjusting their products
• It’s notable and potentially
surprising that Series A+
companies are changing their
products more aggressively
than their earlier stage peers –
potentially due to more
experienced product teams
and more engineering
resources
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
None Pre-seed / angels Seed Series A Series B or later
Product changes
Product has not changed
Changes to the product are planned
Product has already changed

36. May 7, 2020 36
Coronavirus
Impact Survey
Specific product
changes
• The most frequent product
changes involve improving self-
service onboarding, reflecting
an era where customer support
is more challenging than ever
• Some companies are also
adding features to support
remote work or new markets,
such as healthcare
• 6% of companies are
“completely pivoting” their
product
6%
15%
19%
25%
46%
Completely pivoted the
product
Added features to
support remote work
Changes in product to
support targeting a new
market (e.g. healthcare)
Improved self-service
onboarding
No planned changes to
the product
Product changes

37. May 7, 2020 37
Coronavirus Impact Survey:
Marketing in a time of crisis

38. May 7, 2020 38
Coronavirus
Impact Survey
Marketing budgets
• More than half of respondents
indicated that they are
eliminating or reducing their
marketing budget in response
to Coronavirus
“We cut off all paid marketing and are only
doing things for free, and only online
(webinars, blog posts, partnerships).”
- CEO of an Israeli enterprise SaaS company
14%
31%
3%
39%
13%
Marketing budget has
been increased
Marketing budget has
remained the same
Marketing budget
reductions are planned or
likely, but haven't
happened yet
Marketing budget has
been reduced
Marketing budget has
been eliminated
Change in marketing budget

39. May 7, 2020 39
Coronavirus
Impact Survey
Marketing is changing
• In addition to reducing
marketing spend, most
companies (63%) have
changed their marketing
content to reflect the situation
• Only 26% of companies report
no change in marketing
content
“We are changing our message to be
supportive in the situation and not product
pushing at all.”
- CEO of an oil & gas SaaS company
26%
63%
11%
Marketing content has remained the
same
Marketing content has changed to
reflect the current situation
Marketing has been put on pause for
now
Change in marketing content

40. May 7, 2020 40
Coronavirus
Impact Survey
Marketing stories
• Companies are more likely to
put their marketing efforts on
pause if their sales are
negatively impacted by
Coronavirus
• Companies that have
dramatically increased sales
are changing their content to
reflect the current situation
“As some segments are moving slower, we
can invest more time on marketing and
content to have a stronger playbook when
deals start moving again.”
- CEO of an Estonian HR SaaS company
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sales have drastically
decreased
Sales have slightly
decreased
Sales have not changed Sales have slightly
increased
Sales have drastically
increased
Impact of sales on marketing strategy
Marketing content has remained the same
Marketing content has changed to reflect the current situation
Marketing has been put on pause for now

41. May 7, 2020 41
Coronavirus
Impact Survey
Marketing agility
• The higher the ACV, the more
likely it is that a company has
reduced its marketing spend
• This may be due to increased
market uncertainty coupled
with long sales cycles
“I think my market is going to sleep now
and it's stupid to waste money trying to
wake the dead.”
- CEO of a German enterprise AI company
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less than $100 per
year
Between $100 and
$1,000 per year
Between $1,000
and $10,000 per
year
Between $10,000
and $100,000 per
year
Between $100,000
and $500,000 per
year
Over $500,000 per
year
Marketing spend by ACV
Marketing budget has been increased
Marketing budget has remained the same
Marketing budget reductions are planned or likely, but haven't happened yet
Marketing budget has been reduced
Marketing budget has been eliminated

42. May 7, 2020 42
Coronavirus Impact Survey:
Tough HR decisions

43. May 7, 2020 43
Coronavirus
Impact Survey
Hiring strategy
• 56% of respondents indicated
that they have either scaled
back hiring plans or
implemented a complete hiring
freeze
“We’re implementing a hiring freeze and
cutting (almost) all consulting and
purchased services.”
- CEO of an Estonian HR SaaS company
10%
34%
9%
9%
38%
Increased the number of
hires planned
Hiring strategy has not
changed
Reduced the number of
hires planned by up to
25%
Reduced the number of
hires planned by more
than 25%
Implemented a complete
or near-complete hiring
freeze
Impact on hiring strategy

44. May 7, 2020 44
Coronavirus
Impact Survey
Hiring by runway
• Companies with less runway
are more likely to freeze hiring
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 to 6 months of
runway
7 to 12 months of
runway
13 to 18 months of
runway
19 to 24 months of
runway
More than 2 years of
runway
Positive cash flow
Hiring strategy by runway
Increased the number of hires planned Hiring strategy has not changed
Reduced the number of hires planned by more than 25% Reduced the number of hires planned by up to 25%
Implemented a complete or near-complete hiring freeze

45. May 7, 2020 45
Coronavirus
Impact Survey
Hiring plans by region
• American early stage
companies have been the most
aggressive in implementing
hiring freezes with 50%
choosing to do so
• Israeli early stage companies
are the most aggressive in
terms of potential future hiring
“We have accelerated hiring of key staff as
appropriate candidates suddenly became
available in the market.”
- CEO of a UK construction company
USA UK Europe Israel
Hiring plans by region
Increased the number of
hires planned
Hiring strategy has not
changed
Reduced the number of
hires planned by up to
25%
Reduced the number of
hires planned by more
than 25%
Implemented a complete
or near-complete hiring
freeze

46. May 7, 2020 46
Coronavirus
Impact Survey
Pay cuts
• Half of survey respondents are
implementing pay cuts
• Nearly a quarter indicated that
across-the-board pay cuts
have already taken place
“We’re doing pay cuts to lengthen our
positive cash flow capability while not firing
any employees. All employees accepted the
situation with understanding.”
- CEO of an Israeli drone company
49%
15%
1%
13%
23%
No pay cuts are planned Pay cuts are planned or
likely, but haven't
happened yet
Only employees have
taken a pay cut
Only founders have taken
a pay cut
All founders and
employees have taken a
pay cut
Pay cuts implemented

47. May 7, 2020 47
Coronavirus
Impact Survey
Pay cuts vary
• Where companies are
implementing pay cuts, they
are most frequently between
10% and 20%
• Some companies, however, are
implementing far more severe
pay cuts in an effort to survive
the crisis
• 30% of companies that have
implemented pay cuts have
cut pay by over 40% 5%6%
1%
12%
14%
62%
More than 50%Between 40% and
50%
Between 30% and
40%
Between 20% and
30%
Between 10% and
20%
No pay cuts have
been made
Pay cut amounts

48. May 7, 2020 48
Coronavirus
Impact Survey
Layoffs
• 76% of companies are not
planning to lay off any staff
• The companies that have
conducted layoffs have mostly
laid off less than 30% of their
workforce
76%
10%
14%
No one has been laid off, layoffs are not
likely to happen
Layoffs are planned or likely, but haven't
happened yet
Team members have already been laid
off
Companies planning layoffs
46%
42%
13%
Between 0% and 10% Between 10% and 30% More than 30%
Percentage of workforce laid off

49. May 7, 2020 49
Coronavirus
Impact Survey
Layoffs by runway
expansion
• Layoffs have been a key driver
of increases in runway
• 50% of companies which
added 7-12 months of runway
have already conducted layoffs
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No costs cut Cut costs but no
meaningful
impact on
runway
Cut costs and
added 1-3
months of
additional
runway
Cut costs and
added 3-6
months of
additional
runway
Cut costs and
added 7-9
months of
additional
runway
Cut costs and
added 10-12
months of
additional
runway
Cut costs and
added more
than 12 months
of additional
runway
Layoffs by runway expansion
No one has been laid off, layoffs are not likely to happen
Layoffs are planned or likely, but haven't happened yet
Team members have already been laid off

50. May 7, 2020 50
Coronavirus
Impact Survey
Layoffs by region
• Overall, Americans and Israelis
have been the most aggressive
in implementing and planning
layoffs
• European founders have been
the least aggressive
• This may be partially cultural,
but may also reflect strong
government support policies in
European countries
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
USA Israel UK Europe
Layoffs by region
No one has been laid off,
layoffs are not likely to
happen
Layoffs are planned or likely,
but haven't happened yet
Team members have already
been laid off

51. May 7, 2020
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