All companies, from one-person proprietorship to those employing hundreds of thousands of people, established firms or start-ups, are equally struggling in these trying times. One can surely, and perhaps effectively argue about the impact which may vary on a case to case basis, however generally speaking, the newer a company, the bigger the battle in front of it.

Startups are going through a tough time during this pandemic situation. India has the third highest number of startups next to U.S. and China. Quite obviously, the country is highly affected by the downturn of startups. Especially, during a time when the government has placed more emphasis in the development of startups for economic growth. But the Covid pandemic seem to thwart the plans of Government to nurture more startups for their economic growth. During this pandemic crisis, it is reported that most startups have failed, and only a few seem to be in the curve of progression.

Covid hampers Startups

Covid has had a devastating impact on almost every business in the world. The most affected industries include travel, hospitality and education among others. The social distancing behavior has restricted people from attending offices. These issues have caused the businesses to struggle in running their day to day operations. In many cases it is reported that the work productivity has been highly hit during the pandemic.

Although, many firms are managing through remote work, the effectiveness in terms of productivity, communication and collaborative work is a big question. Apart from it, many businesses are disrupted and new opportunities seem to arise. Experts estimate that the impact of Covid is believed to last for many months, and we can expect a recession hit economy for the next several years.

As per a nationwide survey on the ‘Impact of COVID-19 on Indian Start-ups’ conducted by Federation of Indian Chambers of Commerce and Industry (FICCI), jointly with the Indian Angel Network (IAN) with 250 start-ups, 70% of start-ups stated that their businesses have impacted by Covid-19. About 12% of the start-ups have shut operations and 60% are operating with disruptions.

The survey depicts that only 22% of the start-ups have cash reserves to meet the fixed cost expenses of their companies over the next 3-6 months.

The findings show that 68% of the start-ups are majorly cutting down their operational and administrative expenses.

Close to 30% of the companies stated that they will lay off employees if the lockdown was extended too long.

About 43% of the start-ups have already started salary cuts in the range of 20-40% over the period of April-June 2020.

On the investment front, 33% start-ups said that the investors have put the investment decision on hold and 10% stated that the deals have been called off.

Fragile nature of startups makes things worse

Startups in general are very fragile considering the constraints they operate in. Many startups may have very little funding to bootstrap their process. We understand how hard it takes for a startup to be successful under normal circumstances. Finding the right product fit for the market and acquiring customers are among the factors that determine the success and growth of a startup. The Corona pandemic makes it difficult for startups, since the world undergoes unpredictable changes and business is hard to get. The startups need more incubation and support during their initial years to be more productive in the future. These factors that make startups more fragile in nature make them vulnerable and difficult to survive.

In this Corona pandemic situation, the startup firms are affected badly. It is believed that about 90% of the startups have failed in India. There is another report that the startups have cash reserves to last only for the next 3 months. These are bad news for the startups in our economy. The fragile nature of startups and the inexperience of entrepreneurs can very well be the cause for such failures.

A quarter of India’s startups would be in serious trouble if adverse consequences of the COVID-19 pandemic persist for long, according to information technology industry veteran Senapathy (Kris) Gopalakrishnan.  “There will be more failures, unless they get additional funding from existing investors or support from banks on working capital or support from government for some form of debt or grants. We will see more companies get hurt as this prolongs,” said the Chairman of early stage startup accelerator and venture fund, Axilor Ventures.

A comparison of priority investment sectors pre and during COVID-19 shows that 35% of the investors are now looking at investments in healthcare start-ups, followed by EdTech, AI/Deep Tech, FinTech and Agri. Meanwhile, 44% of the incubators surveyed highlighted that their day-to-day operations have been considerably impacted by the COVID-19.

How should startups respond to the Corona crisis

However, there is a silver-lining amidst all the gloom of Corona pandemic. We will take a look at some of the brave startups who have looked up-to new opportunities for growth. Indian startups have ground-breaking ideas and are hard-working people, and success is just around the corner. A few startups are adapting to the present situation and meeting the needs of current market conditions. These are certain aspects that can help startups to survive during the pandemic.

New Opportunities Arise amidst Corona

It is time for startups to look beyond the ordinary to be successful. Relying on traditional mode of business may not yield good results. That may be the reason for failure of many startups. Successful startups have capitalized on the new opportunities that are presenting itself in the society. To make this understand better, people are looking for safety during this time, and providing ways for safe products and services can help startups to stay afloat. Startups should keep looking for those new opportunities that are opening up, and make plans to meet those opportunities. After all this is not the end of the world and keeping your company alive for the next several months can be crucial for their success in the long run.

Rapid Innovation

Rapid innovation is another startup thing that’s caught the eye of business community. Think of startups like Uber, Airbnb and many others, they all brought an innovative idea to the table. The world is a different place because of these firms. These rapid innovative ideas are the prime reason for the success of these next generation technology firms. They saw a unique need in the society and countered it with smart tech solutions that solved people’s problems. Uber has solved the cab problem in providing a hassle-free cab riding experience in the city. Take Aribnb, they provide an innovative concept in accommodating people in shared spaces, which is a big hit and has grown to become a multi-million dollar company. Likewise, many startups today are coming with rapid innovation ideas to fight the Corona pandemic. It is a noble effort by the startups to endeavor in such activities through their ideas and technology. I personally know of an Artificial Intelligence startup that lends its AI search technology for free to the medical community to find vaccine for Corona. The AI start up firm found their technology suitable for medical research community and tailor made their AI product to be useful for medical research purpose.

Government initiative to sustain Startups

The Government has a huge role to play to support startup firms in this pandemic. The Indian government has come up with many initiatives to support startups in the country. The business community can take advantage of these government initiatives and make the best out of it. The government has announced new plans to mentor startups, regulatory reforms in favor of startups, funding sources and investor engagement facility to name a few. It is indeed difficult for startups to survive without favorable government initiatives. It is imperative that Government looks keenly into the affairs of startup development and does the needful. These initiatives can meet the financial deficit of startups. The mentorship programs provided by the Government can be handy to get business insights for experienced campaigners. They can provide valuable advice to steer the startups in the right direction nullifying the Covid impact.

Stakeholder support is essential for Startup growth

The support of stakeholder can go a long way in sustaining the Startups. During these tough times, sometimes startups may need additional funding or much needed morale boost from the stakeholders. It is vital for Stakeholder to have confidence on the ambitions of startups. These are little things that can fetch a long distance. Encourage and support from the stakeholder can keep the morale of the team to achieve their goals.

Success stories of Startups and coping mechanism

Some startups are doing a great job in adapting to the present circumstance. For instance, Zomato has been hit badly as customers have grown skeptical about buying food online. The firm went ahead to establish measures to comfort its clients about the safety of their food, and found a vast opportunity. Zomato has made good business strategic moves in finding big opportunities opposed to smaller ones to be able to survive. They have founded a new segment called Zomato Market where groceries are delivered to home residents, which adds great value to customers during this pandemic. The success of the Zomato Market has led them to launch their extended service in countries like UAE and Lebanon. In an interesting equation, Zomato is ready to deliver alcohol to home residents.

While the travel industry has taken a heavy beating, firms like MakeMyTrip have to be on the edge to add tremendous value to the present scenario to stay afloat. In a strategic move, MakeMyTrip realized the present travel equation and is offering a platform for short stays for their customers. They have piloted a short stay program for travelers wanting to visit Tirupathi in collaboration with Goibibo and Redbus. MakeMyTrip is keen to provide a great experience for its customers even during this pandemic situation, and their co-branded cards with leading banks like ICICI provide a rewarding travel experience.

A popular gym and fitness joint called Curefit in the country has succumbed to the pressures of Covid. The firm has taken to online classes to keep their gym facility running. They have created a subscription model, so the fitness enthusiasts can still keep the ball rolling and maintain their perfect physique. The virtual classes will help them to stay connected with their instructors, and continue their exercise routine.

What we can perceive from these interesting stories is there are ways to keep a business going. Zomato, Makemytrip and Curefit are good examples on how startups are coping during this pandemic. The entrepreneurs who have put their thinking cap on to assess the situation and do the right thing have found the big advantage.

It is tough, but not impossible

Startups can leverage the government support, policies, stakeholder support, rapid innovation to come successfully out of this Covid crisis. It can be tough, but it is not impossible. We should appreciate the noble efforts of some startups who have geared up in fighting the Corona spread. Seeing the new opportunities and adapting to the disruptive world is key to surviving in this pandemic. Taking the right initiatives at the right time and having the belief to succeed will help startups to see through this massive storm.

“Startups must use their strengths in innovation to re-strategize and re-think their business,” said Ganesh Raju, Co-Chair, FICCI Start-up Committee and Founder, TurboStart.  

This is part II of our blog post on Exposure Notification. Our original blog on Exposure Notification was published August 30^th.

Let’s look at the Background

Public Health Agencies around the world and especially in US have had little success with using mobile phones based technology to monitor the spread of Coronavirus and to warn users proactively.

Some public health agencies in the United States and around the world wanted to build mobile apps that would help them track the spread of the virus, through a process known as “contact tracing.” Due to the slow moving government apparatus, legal and procedural requirements and the logistical challenges, few of such program could take off. The contact-tracing apps that were initially launched did not function properly because of certain limitations, primarily the concerns around privacy and collection of data.

Apple and Google announced a surprise partnership at the start of this pandemic in April. When Apple and Google announced their work together on the COVID-19 Exposure Notification API, the companies put behind years of rivalry to join hands to help people and Public Health Authorities fight this massive battle. Apple and Google announced two phases of the Contact Tracing project. During the first phase, which is what came with iOS 13.5, laid out that that users first download an app from their public health authority and then opt-in to Exposure Notifications. The process of Exposure Notification System works through sharing anonymous Bluetooth beacons with nearby devices running the same software, tagging those that suggest extended and close contact associated with coronavirus spread, and saving the last 14 days of these records.

At the same time, Apple and Google also indicated start of work on the second phase, which would reduce the reliance on contact tracing app from public health authorities while bringing the core functions of the COVID-19 Exposure Notification technology directly into iOS and Android. This is essentially what Apple and Google announced on Tuesday, 1^st September.

So what is new in the second phase of Exposure Notifications

Apple and Google announced on 01^st September that their joint program, contact tracing Exposure Notifications System, can inform people of potential exposure to COVID-19 without a dedicated Exposure Notifications app. The second phase of this program, the companies announced, re-launches the warning software in a new and better Avatar, so that state public health agencies can participate without having to create customized apps. This app-less functionality is called Exposure Notifications Express and is only available when a Public Health Authority (PHA) supports it.

The two partners, Apple and Google are introducing new tools that benefit both the public and public health authorities, making it much easier for public health authorities to implement digital exposure notification, while reducing a step in the process for the general users. For public health authorities, now they do not need to worry about the need for developing and maintaining their own individual contact tracing application. Apple made this breakthrough via the iOS 13.7 system update, released 01^st September to general public, while Google is implementing it with an automatically generated application on Android 6.0, upcoming later in September, taking a little longer because of the very different method through which it manages system services and OS updates.

For public health authorities, the new changes bring significant ease of operation as the process of adopting Exposure Notifications Express by users is significantly streamlined compared to adopting the existing Exposure Notification API where users first had to download the contact tracing application. Public health authorities simply provide a configuration file that includes their name, logo, criteria for triggering an exposure notification, and information and protocol that is displayed to users following an exposure. The existing way of Exposure Notification API demanded that users download the contact tracing application from their public health authority first before proceeding with other steps. This was a major headache for public health organizations who were required to maintain their own infrastructure and software application.  Further it was an additional and often confusing step for users. Now that part is completely eliminated benefiting both public health authorities and users.

Further Apple and Google say that they will use the information provided by the public health authorities to offer a fully operational Exposure Notification Systems on behalf of the public health authority directly integrated into their respective operating systems, in case of Apple this is iOS 13.7.

Crucially, Public health authorities still have full control over the system, though, and there are no additional privacy or data related concerns. The Public Health Authorities still dictate and control the process of triggering notifications, what is the language and structure of the advice, and guidance on the next course of action for exposed individuals.

iOS 13.7 changes

With the new Exposure Notification Express, which forms the second phase of Exposure Notification System, the system removes one of the key barriers to adoption that led to a slow start to the software. Once users update iOS 13.7, users can now enable COVID-19 Exposure Notifications directly in the Settings app on their iPhone. This new process is called Exposure Notifications Express. The process is as simple as enabling user preferences in any other application and just takes a few taps, including agreeing to the public health agency terms and conditions of service. Additionally, users will also be able to opt-in to receive a push notification when their local public health authority adopts Exposure Notifications Express.

Once an user enables exposure notifications in the Settings, their iPhone will begin monitoring with Bluetooth to log possible exposures so the user can be notified of a potential COVID-19 exposure based on the guidelines set by the local public health authority. The process of monitoring and triggering Exposure Notification System works without any changes, through sharing anonymous Bluetooth beacons with nearby devices running the same software, tagging those that suggest extended and close contact associated with coronavirus spread, and saving the last 14 days of these records.

At least in the United States, many people haven’t had the option of participating, as states have been slow to create apps. Now, with “exposure notifications express,” states will have less work to participate. Through this simplification pf approach, Apple and Google hope that adaption rate of the Exposure Notifications Express system will dramatically increase, at both levels, from users and public health authorities. The first public health authorities in the United States to adopt the Exposure Notification Express system will be Maryland, Nevada, Virginia, and Washington, D.C.

Users who live in states that participate in the software may get a pop-up notification, prompting them to opt into the program. By following simple steps, they can share their Bluetooth data and receive notifications if they come in contact with another participant who has tested positive. For states that already have a contact tracing application standalone application using the COVID-19 Exposure Notification API, those apps can still exist and operate on their own. As of right now, Apple and Google say that 25 states and territories, representing more than 55% of the population, are exploring Exposure Notifications System solutions.

Finally, Apple and Google emphasize that all of the original privacy protections of the Exposure Notification API also extend to the Exposure Notifications Express. Users must explicitly enable exposure notifications, nothing is enabled by default. No location data is shared and the system does not share your identity with other users, Apple, or Google. All matching is done on-device and users have full control over whether they want to report a positive test.

“I would say this is an improvement,” said Jeffrey Kahn, director of the Johns Hopkins Berman Institute of Bioethics. Kahn, who has been studying the use of technology to fight the virus, said states have been hamstrung by indecision around which technology vendors they should use to build their apps, among other issues. He said this may help speed up adoption, but shouldn’t be considered a magic bullet.

“Public health agencies are carrying an extraordinary load in managing the novel coronavirus response,” said Scott J. Becker, head of the Association of Public Health Laboratories, in a statement provided by the companies. “The easier we make it for state and territorial public health agencies to develop and deploy, the sooner we can expand COVID-19 exposure notification in our communities and help end the pandemic.”