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The Bank Thunderstorm and Its Impact on Start-ups

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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

The Bank Thunderstorm and Its Impact on Start-ups

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.

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

Analysis based on this information:


The COVID-19 pandemic has caused a ripple effect worldwide, and one of its harsh realities is the economic recession. Governments, businesses, and individuals are all affected by this crisis. In the business world, start-ups, who operate on tight budgets and are heavily financed, are among the hardest hit. The recent statement made by Garry Tan, CEO of Y combiner, on March 11, sheds light on the plight of start-ups in the wake of the pandemic.

According to Tan’s interview with CNBC, the “bank thunderstorm” had affected 1000 start-ups, and 1/3 of them will not be able to pay wages in the next 30 days. The term “bank thunderstorm” refers to the sudden and substantial change in various economies due to the pandemic. The effects of this change are felt far and wide and are characterized by a slowdown in investment, reduced consumer demand, and logistical challenges, among others.

The impact of the bank thunderstorm on start-ups is severe. Unlike established companies, start-ups lack the financial wherewithal to withstand prolonged economic struggles. Failed ventures and bankruptcy are typical outcomes of such crises. Therefore, the fact that 1/3 of affected start-ups cannot pay salaries in the next 30 days is cause for alarm. Employees, who are already grappling with the fear of losing their jobs, will now have to battle the harsh realities of the pandemic-induced economic downturn.

In conclusion, the statement made by Garry Tan highlights the adverse impact of the pandemic on start-ups. The bank thunderstorm has caused many businesses to struggle with financial instability, and start-ups, who operate on limited budgets, are the most vulnerable. A third of the affected 1000 start-ups being unable to pay wages in the upcoming days will result in many job losses, which will contribute to the overall economic recession. It is essential for governments and different industry players to find ways of supporting start-ups to avoid a further crisis.

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