Women Technology Entrepreneurs Report Devastating Financial, Economic and Emotional Impacts of COVID-19

The 2021 Edition of COVID19 Impact Report Is Now Available.

So what does that mean to you and why should you care?

As a tech entrepreneur, I want everyone to be aware of a population that fuels the global economy is significantly impacted with this pandemic. Plus share solutions that are available to navigate a terrain that is very complex.

This is how it all started.

When COVID-19 hit last year, Senator Patty Kuderer asked how Women in Cloud Portfolio founders are doing and do you have any meaningful data to share with legislators. And how will you be serving the new landscape?

After talking to my tribe and the board of advisors we commissioned COVID-19 Impact Survey to understand the state of the ecosystem and also impact on businesses.

When we saw the data, we were devastated with the results and it was much worse than we had anticipated. The report indicated that the average loss of revenue in the next 24 months, across women tech entrepreneurs surveyed expanding 16 industries, is $500 thousand to $1 million per company. An additional $1 million to $5 million per company is expected in opportunity loss over the next three years.

Women entrepreneurs face many complex challenges in setting up, growing and sustaining their tech businesses.

Gender stereotypes, a lack of access to finance and complex societal threats like political instability, enormous uncertainty and a range of different barriers can prevent women’s businesses from thriving.

It is particularly striking that the majority of women reported that the impact of the COVID-19 pandemic was the single greatest challenge they had ever faced.

This year, we got lucky. We partnered with M12 Ventures and they commissioned a second edition of COVID-19 research to understand the comparison and see if something changed or if it is getting worse.

RESULTS FROM THIS RESEARCH

Year over Year Comparison

Overall, the 2021 pandemic-related impacts so far are fairly consistent with the projections in the 2020 survey responses. While we continue to navigate the pandemic the 2021 numbers may increase significantly.

Financial Impact

• Financial impact to date is slightly lower than expected based on the two-year predictions of 2020 respondents.
• Seventy-five per cent of 2021 survey respondents have lost $10 thousand or more in revenue and opportunities, compared to the previous year when 100 per cent of respondents predicted to lose a minimum of $10 thousand as a result of the pandemic-related restrictions and shutdowns.
• The majority of 2021 respondents have lost $50 thousand to $100 thousand to date, whereas the projection in 2020 was revenue loss of $500 thousand to $1 million over 24 months.
• Fifty per cent of 2021 respondents indicated opportunity losses of $50 thousand or more to date, compared to the expected loss of between $1 million and $5 million from 2020 to 2022.
• The business areas impacted resulting in revenue loss to date, remain the same from 2020 to 2021, with the most significant disruptions around projects cancelled or postponed, lost income, and pipeline and investment freezing.
• Respondents from both 2020 and 2021 associated additional costs surrounding utility and tax payments, the implementation of work-from-home procedures, technology services and additional paid sick leave to support their employees throughout the pandemic.

Operational Impact

• Thirty per cent of 2021 respondents indicated they will only attend events digitally over the next three months, compared to 31 per cent of 2020 participants who gave the same response.
• Fifty per cent of 2021 respondents reported they don’t plan to travel in the next three months compared to the 63 per cent who gave this response in 2020.
• More than 62 per cent of 2021 respondents indicated the addition of paid sick days or time off for their employees, whereas less than 25 per cent of those surveyed in 2020 had offered additional paid leave for employees.
• Twenty-five per cent of 2021 respondents have been forced to downsize their businesses, while only 19 per cent of 2020 survey respondents had anticipated the need to downsize.

Emotional Impact

• Seventy-eight per cent of 2020 respondents indicated somewhat or much higher stress and anxiety levels, increasing to 82.5 per cent who gave this response in 2021.
• Sixty per cent of 2021 respondents noted a negative or somewhat negative emotional impact on themselves and their team, compared to 49 per cent of 2020 responses.
• Across both the 2020 and 2021 surveys, respondents who experienced higher levels of stress and anxiety and/or negative or somewhat negative emotional impacts most commonly correlated to greater financial loss and/or operational disruptions

Infographic that summarizes everything.

2021 Edition of COVID-19 Impact on Female Tech Founders, Women in Cloud

Access the 2021 Edition of COVID-19 Impact Report & Data Package

If this data makes you feel frustrated and think about the world we live in. You may feel hopeless. My ask is don’t give up.

Economic development requires all of us to actively get engaged. Your access is the magical key to creating infinite opportunities. We can still come together to make a difference.

Thinking how? Here are some ways you can become an economic ignitor and create access!

1. Explore Advisorship — if you have access to people, perspectives, and skills to help female founders then signup to become Women in Cloud Advisor. Signup for 7day Get Introduced Challenge before Oct3rd to become an influential advisor.
2. Contribute and Impress an entrepreneur —70% of women entrepreneurs in our network stated their #1 request was a warm introduction to an advisor, leader or mentor who can transform the trajectory of their career or business. You can suggest or recommend Women in Cloud Get Introduced Platform to help them secure warm introductions. Do the research together and help them to draft a crisp ask to secure their introduction.
3. Explore and Recommend B2B ready solutions developed by women. Women in Cloud solutions marketplace is available to help you share the right solution to your company, network or partners.

These are simple actions where you don’t have to lift mountains. You can just unlock access to people and solutions to accelerate cloud economy.

So, can you do it? will you become an economic ignitor?

Will you join Women in Cloud $1B economic access movement?

If yes, I welcome each one of you to WIC digital network.

Together, we rise.