Jos White, Standard Partner at Notion Money, explores how European tech founders can supercharge progress in 2021
How can tech founders supercharge growth in 2021?
The past year has shown that the expansion of European tech is unstoppable. Tech.eu claimed that January 2021 racked up 311 funding rounds in Europe and Israel, totalling just less than €6.7 billion in expense size, as opposed with 267 specials and €5.2 billion elevated in 2020 and 237 and €3.2 billion elevated in 2019. On leading of this, Europe is dwelling to over 60 tech startups valued at more than $1 billion. These include things like family names like Babylon Well being, Deliveroo and Improbable, as very well as B2B SaaS organizations these as GoCardless which just so takes place to be a member of our portfolio!
The moment yet again the viewpoint that volatility breeds innovation and success has confirmed to be true, as for every the 2008 credit crunch and dot com crash prior to that. But what ought to founders be performing to get advantage? In this short article I’ll weigh up irrespective of whether 2021 is a time for defence or offence (spoiler: it is the latter), then share my ideas on the most current and finest tech tendencies founders should really be jumping at when the investment decision landscape is so potent. I’ll conclude with a be aware on long run considerations that startups need to be ready to manage.
Is 2021 a period a time for defence or offence?
When the pandemic very first hit our suggestions to the firms in our portfolio overwhelmingly advised that they retrench, preserve hard cash, lengthen their runway and do almost everything they could to be lean, economical and targeted. This was of class extra pertinent for those people running in sectors tricky strike by the pandemic these as journey and leisure, but the long term was so uncertain that the “taking stock” mentality was essential regardless.
Now, a yr later on, it is crystal clear that most tech corporations are web beneficiaries of the pandemic’s influence. Even if corporations work in sectors that carry on to be negatively afflicted by ongoing lockdowns, tech organizations need to be a catalyst for versatility for their conclude-customers, giving them with impressive remedies to keep on to produce profits while their regular gross sales route is on pause.
The over is specifically applicable for young, far more ground breaking tech providers, established above the last decade or so, that are built in the cloud alternatively than on-premise this means they are comparatively pandemic-evidence. In some scenarios this has enabled younger corporations to overtake much more perfectly-established competitors, as inherent weaknesses are exposed by the necessity to hustle and adapt just about overnight. So, now is a very good time for tech organizations to be bullish and get complete benefit of any advancement possibilities laid out before them, and the good information for founders is that the sector for investment decision into revolutionary corporations is quite solid.
Value of European tech providers soars to €618 billion
The price of European tech providers has surged to €618 billion in 2020, signalling a golden age of entrepreneurship regardless of the effects of coronavirus. Go through listed here
Be wise and heed the most recent tech traits — they aren’t likely away
As a Standard Husband or wife of a B2B SaaS VC I’m in a situation to see the hottest tech developments as new startup propositions land on my desk this also allows me to discover wherever the gaps are in the market. A couple of the latter are WFAnywhere technological innovation applications that empower businesses to shift their target from place to manufacturer and the potential of Open Source to get on Significant Tech:
- WFAnywhere tech: Outside of communication and collaboration, the enterprise earth urgently requirements resources that help true remote working. These include things like as-productive-as-in-person recruitment, on-boarding, payroll, tradition and team-developing, brainstorming, functionality administration and anything else that is wanted to make, operate, and develop an over-attaining distant or virtual staff.
- Moving from spot to brand name concentrated: These equipment assist B2B2C firms that are section digital and aspect bodily (imagine dining establishments and gyms) to turn into World-wide-web corporations, opening up new earnings streams and reworking by themselves from a area to a model. For case in point, a cafe can evolve earlier its location by developing food-kits, recipe books and far more and gyms can offer on-line classes.
- Open Supply vs. Significant Tech: Open Supply continues to be additional and far more prevalent in a assortment of flavours to present speedier and extra open innovation and an choice to the escalating hostility to closed, rigid and all impressive walled gardens. I anticipate open resource tech will carry on to have much more and more of an affect putting additional control on the hands of the builders and the end users.
A closing piece of tips I want to share with founders is, just since you managed to flex all over the troubles COVID-19 posed to your small business doesn’t suggest you need to be complacent all over potential troubles. Using Brexit as an case in point, we are presently seeing some United kingdom corporations wrestle to recruit top talent from the continent and the challenge of equivalence has meant lots of fintechs have experienced to promptly established up workplaces in Europe to escape the affect of new restrictions.
If you are a tech founder, now is the time to be as imaginative and revolutionary as you can and just take risks, but that really should under no circumstances occur at the expense of in-depth arranging that prepares you for just about every state of affairs. If 2020 has taught us anything at all it is that we should usually be ready!