The coronavirus pandemic has been the toughest phase for many industries and businesses where physical interaction was a must. However, it had no major impact on the industries where physical interaction was not the need.
Yes! Digitalization had saved many businesses and tech startups during the pandemic. Where public interactions were restricted to the internet, tech startups took a boost in flourishing at this time and remained harmless.
Various new startups launched during the 2020 pandemic. Tech startups that flourished the most at this time were Ed-tech, Fin-tech, AI, and Health-tech. In this article, let’s explore how the pandemic has impacted the future of tech startups.
Future of Tech Startups Influenced After the Pandemic:
Increased Job Preferences in IT Sector
Working preferences in the IT sector shoot up with the effect of the pandemic. You must have observed a noteworthy spike in the IT sector as the demand for the software industry increased in lockdown. The growth of creating digital products came in demand causing an increased job preference in the IT sector rapidly during the pandemic.
For example, people need payment apps and software like Mobikwik, MoonPay, Google pay, etc; to make transactions digitally. Now, multiple tech startups have emerged in the corporate world making it a preferable industry to work with.
Diverse Workforce Set-Up
The tech startups found the opportunity in adversity during the pandemic. A lot of startups emerged in crisis. If we talk about health-tech startups like Nomad Health, Medtelligent, MedTrans Go, and Headway; witnessed a great jump during the pandemic. One can observe a diverse workforce set-up that offers a professional skillset through the digital platform.
Talking about the diverse workforce set-up in Hofstede’s cultural dimensions, when different ideas and plans get exchanged, they are understood and accounted for well through digital platforms.
It has made it easy for tech startups to plan and manage business expansion into culturally different countries efficiently.
Ensure Quality Engagement
With an increase in digitalization and a diverse workforce, another aspect that got impacted is the quality engagement of the employees in tech startups. The coronavirus pandemic diverted the employee engagement factor to be focused on qualitative growth over quantitative growth. This shift has impacted the economy and fintech startups like Cash App, T-REX, DriveWealth, and Kinly.
Further, this impacted the financial support or capital because better unit economics are closely correlated with higher quality. This particular time has allowed the fintech startups to focus on ensuring better employee engagement with the technology to make better capital in the future.
In a nutshell, Yes! The pandemic impacted the future of Tech startups. However, the overall impact remains more positive than negative. This change has helped Tech startups to look for better job opportunities, focusing on quality engagement, and boosting employee morale to ensure smooth growth of the tech startups.
The pandemic had a negative approach too, as creativity has been hampered, AI technology took over the work of humans, and reliability on smartphones for essential tasks can be noticed.
Overall, it has been a bag mix of both gains and losses. If you are thinking to open a tech startup, go ahead and experiment as now you know the future of tech startups after the pandemic.