2008 vs 2020... How the recession shaped technology, what will CORONA do?

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At some point we’re going to stop talking about COVID19 and the coronavirus. Unfortunately, that day is not today. We’re all, or at least most of us are, still waiting for a vaccine that we trust so that we can go back to some semblance of normalcy. But much like The Great Depression of 2008, the economy has been in and out of a freefall, many people globally are out of work and we don’t know when recovery is going to come.

However, out of that major setback a number of companies made major breakthroughs and are affectionately some of the biggest unicorns and strongest case studies that are discussed within the entrepreneurial ecosystem today.

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Some examples of the tech giants that were born out of The Great Depression and changed the way we live life today are:

  1. Instagram (Founded 2010)

  2. Pinterest (Founded 2010)

  3. WhatsApp (Founded 2009)

  4. Venmo (Founded 2009)

  5. Uber (Founded 2009)

Now, I won’t get into what’s happening politically with some tech giants such as Amazon, Google and Facebook right now (i.e., being seen as monopolies). Especially considering Facebook acquired both Instagram and WhatsApp but I digress. Let’s just focus on the fact that necessity is the mother of invention and innovation.

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At the beginning of the year many founders were hopeful for the bull market to continue and for VC and angel funds to keep flowing. Based on what I’ve seen, there are mixed feelings amongst the VC community. Some companies have been bolstered by the impact of the global pandemic virtual communication tools (e.g., Zoom), online retail (e.g., Amazon), and remote learning tools (e.g., Google Classroom). Also, the technology industry is still making big bets on things like cryptocurrency, machine learning, artificial intelligence, and cloud technology. What I’m saying with all of this is that technology has in some ways been made stronger because of the pandemic. We now rely extremely heavily on technology to maintain what we have left of the economy and employment.

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I have always been a supporter and advocate of STEM based businesses. But I feel compelled to say that we need to now, more than ever, invest in STEM based businesses. Especially in places like The Bahamas - my home and heart. Monolithic economies such as The Bahamas’ tourism industry have taken the hardest hit from the pandemic. I believe that similar to The Great Recession, COVID-19 will be the fire that fuels the next wave of invention and innovation. As we move beyond our current existence of quarantine, virtual fetes, remote social engagement and constant confusion on where all the toilet paper, hand sanitizer and disinfectant wipes are going I’d like to encourage my creative thinkers out there to push the bar forward. Ideate, innovate, and create. The investment capital is out there for the next wave of startups that will revolutionize how we interact with each other and the world around us.

So, as I gaze into my crystal ball I would bet that The Global Pandemic of 2020 (or whatever we’re going to call it when this is all over) will be remarkably similar to The Great Recession. But instead of revolutionizing the way we get around, socialize, and pay using cash/credit like Uber, Instagram and Veno did, the next wave of the global game changers will introduce the next generation of socialization, fitness, remote learning, and finances through cryptocurrency. So who are you betting on?

xoxo

Jae from The Last Mermaid

Janaee Wallace