According to John F. Kennedy, the term “crisis” in Chinese is made up of two characters, one symbolising danger and the other opportunity. He wasn’t totally precise in his linguistics, but the spirit is correct: a crisis presents an option. This is especially true today.
We are currently in the midst of one of the most economically and socially devastating events since the 2008 financial crisis. The COVID-19 pandemic has had an impact on almost every aspect of life, forcing societies to reconsider their practises and norms, from how people live and work to how businesses interact with their customers, how customers choose and purchase products and services, and how they provide their supply chains.
COVID-19 has been a source of inspiration for innovative startup projects. Startups are developing new technology and businesses to meet the needs of the post-COVID era. These businesses have taken advantage of the Pandemic’s opportunities and converted ashes into jewels. What is causing this startup boom? Many businesses have seen a convergence of market forces, teams, and innovation.
According to McKinsey & Co review, more than 90 percent of executives, in our recent survey of more than 200 organisations across industries said they expect the fallout from COVID-19 to fundamentally change the way they do business over the next five years, with nearly as many claiming that the crisis will have a long-term impact on their customers’ needs.
Source: McKinsey & Co
Not only were masks and sanitizer in high demand during the onset of the coronavirus epidemic. Many people’s purchasing habits had shifted dramatically, and the stay-at-home economy was thriving. As new market opportunities became apparent, companies quickly shifted their focus to satisfy these evolving consumer demands.
Covid-19-friendly industries and product and service clusters are driving the startup boom. Because customers use technology for work, fitness, learning, and sociability, digital solutions play a significant role in this. The number of start-ups addressing the challenges of the quarantined people, attempting to adapt, has grown significantly. This category comprises digital teleworking tools, homeschooling options, safe food delivery solutions, therapy and stress coping methods, and symptom tracking innovation.
The Zoom boom is a prime example of how shifting consumer preferences have favoured new technological solutions. The platform’s activity increased from 10 million daily participants in December 2019 to around 300 million daily participants in April 2020.
The concept of a network is becoming increasingly broad, both within and outside of organisations. Opportunities emerge for collaborative work platforms and productivity tools/methodologies that go beyond teleconferencing, with a focus on sharing and co-creation in traditionally hesitant and traditional sectors. Geek Bot and Rows are two such examples.
As customers sought new solutions, market possibilities for enterprises of all kinds arose to accommodate the new demand. Startups, on the other hand, have an edge since they are nimble enough to respond swiftly to changing market conditions.
Many early-stage organisations have traditionally been built on a fast-paced, rapid-response mindset. As a result, when it comes to bringing new products and services to market, these firms can usually meet tight deadlines.
As a result of the crisis, several entrepreneurs have launched goods and services that are directly related to health and safety. Startups have focused on at-home Covid-19 tests, cleaning and sanitising, medicine delivery, and other services.
There have also been opportunities that are not directly related to healthcare. As the market for IT investments heated up in 2020, much of the attention has been focused on digital services. In fact, three of the top ten largest tech IPOs occurred this year, in stark contrast to the many companies that filed for bankruptcy.
Funding opportunities tend to favour well-developed firms, and according to Pitchbook, 69% of deal prices in 2020 are late stage.
The transition to remote learning has upended education from kindergarten through college. As a result, people all around the world were looking for better answers. Families are trying to retain younger pupils in school, and older students are reconsidering the exorbitant cost of college when it does not involve an in-person experience.
There is a definite need for new solutions to support the demands of online learners, and according to CB Insights, the majority of edtech investments in 2020 will go to early stage firms. This suggests that new ideas are being brought to the table in order to meet the demands of students and teachers while also boosting online learning.