A global recession is looking inevitable. Here are 10 practical tips from Europe's top investors on how founders can weather 2020's black swan.

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A global recession is looking inevitable. Here are 10 practical tips from Europe's top investors on how founders can weather 2020's black swan.

Evgenia Plotnikova, partner at Dawn Capital

Dawn Capital

Evgenia Plotnikova, partner at Dawn Capital

  • Europe's venture capitalists expect a recession as the coronavirus outbreak heralds a slowdown in economic activity.
  • We asked venture capitalists to share one piece of advice for startups to help them weather the coronavirus.
  • The most common advice: cut your burn rate and build up your cash reserves.
  • Click here for more BI Prime stories.

For many startup founders, the coronavirus outbreak and the accompanying market turmoil represent the first real economic crisis after a decade-long bull market.

Tech firms are adapting by moving to remote work, but face long-term disruption to their growth, fundraising, and hiring. Some businesses - even those which looked healthy before the coronavirus crisis - will likely collapse thanks to the unexpected slowdown.

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Europe's tech investors are trying to put a brave face on events, but predict a recession and a market shakeout.

"I want to be honest with founders that it makes the already hard process of raising capital that much harder. Some VCs claim it's business as usual and I think that's disingenuous," said Paul Murphy, partner at Northzone.

But startups can mitigate their risk. Business Insider consulted nine European venture capitalists and asked them to share a piece of advice for founders trying to navigate 2020's "black swan" event.

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