The COVID-19 pandemic will have a far-reaching and long-lasting impact on the global economy. Even though lockdown restricts have now been eased in several countries, financial markets are likely to take a long time to recover from the coronavirus-triggered crisis.

As reported by the International Monetary Fund, this is the worst economic downturn since the Great Depression, projecting a humongous loss worth $9 trillion in global gross domestic product over the next two years.

These are challenging times for businesses, even more so for startups that operate with razor-thin margins. Besides dealing with weak demand, rapidly changing consumption patterns and revenue losses, the startup ecosystem is facing the challenge of raising capital. With investors becoming wary of the pandemic’s economic implications, there has been a significant decline in funding activities.

Not just local VCs and PEs, but many deep-pocketed global investors have also put off new investment deals until the current situation subsides. In this gloomy scenario, a pertinent question then arises—How can startups raise funds during a crisis? The answer lies in three ‘R’—research, reassess and restructure

The startup funding space may not be as active as it was around this time last year, but VCs are still seeking investment opportunities that can help them grow their wealth. Find out which investors are most likely to invest in the sector your startup operates in, and then shortlist their names. Look into their recent investments to gather critical information such as the average deal size, funding round (whether they usually invest in seed-stage startups or large-stage startups), and how involved they are with their investee companies.

The research will give you a clear perspective to zero down on the prospective investors that are best suited to financially support your venture. Once you know the ins-and-outs of the industry, you can also have an edge over your competitors who might be eyeing the same capital.