YC CEO: The bank thunderstorm has affected a large number of start-ups, of which 1 3 cannot pay wages within the next 30 days

On March 11, Garry Tan, CEO of Y combiner, said in an interview with CNBC that the bank thunderstorm affected 1000 start-ups, and 1/3 of them would not be able to pay wages in the next 30 days.

Interpretation of this information:

In an interview with CNBC, Garry Tan, CEO of Y Combinator, stated that the COVID-19 crisis is causing significant financial difficulties for many start-ups. Specifically, Tan noted that the sudden economic downturn due to the pandemic is affecting roughly 1000 start-ups, and approximately one-third of them will not be able to pay their employees in the coming days.

The current pandemic has had a significant impact on global markets, with many businesses struggling to adapt to the sudden changes. This has been particularly difficult for start-ups that are still in their early stages of growth and may not have the same level of financial stability as larger, more established companies.

Unsurprisingly, the inability to pay employees is a major concern for start-ups. Not being able to pay wages can harm a company’s reputation and make it difficult to retain talented employees moving forward. Additionally, many start-ups have employees who rely on them for income, creating additional stress and uncertainty during these challenging times.

While the announcement by Tan is certainly concerning, it’s important to note that many start-ups are still finding ways to stay afloat. Some are exploring alternative funding options, such as venture capital or loans. Others are pivoting their business models to adapt to changing market conditions. These efforts demonstrate that start-up companies are resilient and capable of overcoming significant challenges.

Overall, Tan’s comments serve as a reminder of the impact the COVID-19 crisis is having on businesses of all sizes. They highlight the need for comprehensive support from governments and other entities to help companies weather this storm and emerge stronger on the other side.