The COVID-19 pandemic has induced radical uncertainty into the business environment, threatening entrepreneurs' performance and well-being. Drawing on Conservation of Resources (COR) theory, we examine how startup teams allocate resources to cope with this pandemic. In a convergent parallel mixed method design, we analyze 12 waves of survey data and four waves of interviews collected in 35 startup teams in Germany. Findings from an analysis of temporal development of predictors (quantitative results) and entrepreneurs' views (qualitative analysis) explain the effectiveness of resource allocation mechanisms to reduce business impairment and compassion fatigue. Taken together we develop the concept of entrepreneurial coping to extend COR theory and the body of work on entrepreneurial teams and uncertainty in entrepreneurship.