In his efforts to aid coronavirus-impacted startups that are struggling to cope up with the flailing economy, the CNBC CryptoTrader talk show anchor, Ran Neuner, announced a ten million US dollars ($10 million) relief fund on Tuesday.
Beyond the lockdowns to contain the spread of this deadly disease and countries stepping up measures to control impact on its citizens, the coronavirus pandemic has had far-reaching implications on the global economy so far. As famous economist Nouriel Roubini predicted earlier this month, we are on the brink of the next big recession, probably much worse than what we faced during the 2008 financial crisis.
CNBC CryptoTrader anchor lends a helping hand to crisis-stricken startups
Ran Neuner, who was once the CEO and founder of one of South Africa’s leading and popular advertising agencies, The Creative Counsel, and now the host of a crypto show called the CNBC CryptoTrader, believes that it is the budding businesses that are feeling the maximum hit from this crisis as they are yet to gain a foothold in the market.
Thus, in collaboration with the crypto investment firm Onchain Capital’s co-founder, Yossi Hasson, Neuner, who is also the other co-founder and CEO of the firm, declared that the duo had set aside ten million dollars to assist the pandemic-hit startups that are finding it difficult to establish themselves in such hard times.
Neuner also indicated that the relief fund will encourage more participation from other investors who are then expected to donate an additional sum of ninety million US dollars ($90 million), thereby taking the total to one hundred million US dollars ($100 million).
Neuner justifies his move
Offering a rationale behind setting up the relief fund, the CNBC CryptoTrader host said that startups are the mainstay of the economy and the generations to come. It is a critical time for them as they are not only struggling to assert themselves but finding sufficient capital to keep them from closing down permanently. Without help, they will not be able to sustain, Neuner explained.
The newly-launched relief fund will offer financial aid to startups from various industries, as long as they are impacted by the coronavirus pandemic and are able to demonstrate their struggles to counter the hard-hitting implications.
COVID-19 hit startups see a ray of hope
Shedding more light on this initiative and motive behind launching it, Neuner said there are, essentially, two forms of startups impacted by the COVID-19 crisis. The first ones involve those who are unable to establish themselves without adequate capital injection. The second are those that have witnessed a surge in demand due to the extraordinary opportunities presented by the COVID-19 spread but are unable to sustain without appropriate resources, Neuner added.
Hours after the announcement of the relief fund, Neuner said there were five up-and-coming prospects on the table. And while the Neuner fund volunteers are currently carefully assessing the deals to determine how well they will do once the disaster has passed, Neuner added that his relief fund is likely to be more beneficial than the government-proposed stimulus package of one trillion US dollars ($1 trillion).
We are hopeful that as soon as we overcome this tragedy and help markets recover, these funded startups will be able to get back on their feet and find their niche, CNBC CryptoTrader host added confidently.