15 tech startups poised to come back out stronger from the COVID-19 crash in keeping with buyers led by tech legend John Chambers
15 tech startups poised to come back out stronger from the COVID-19 crash, in keeping with buyers together with John Chambers
- Many tech startups collapse throughout financial downturns, however that is additionally when the businesses constructed to final emerge.
- “Virtually all the nice excessive tech firms in every era, firms like Cisco, Salesforce, Oracle, Microsoft, Google, had been those that broke away throughout an financial disaster,” Silicon Valley legend John Chambers informed Enterprise Insider.
- Predicting the following Cisco, Salesforce or Google is hard, however Chambers and different veteran enterprise capitalists pointed to 15 startups they consider are poised to come back out stronger from the COVID-19 disaster.
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Whereas startups that had been burning by way of VC money with out significant income might crash and burn due to an financial downturn, some tech startups will come out the opposite aspect stronger, extra nimble, and wiser.
The COVID-19 disaster has already pressured some startups to cut jobs and benefits as they reel from a sudden droop that many worry is resulting in a recession.
Silicon Valley legend John Chambers believes up to 45% of US startups aren’t going to make it. However Chambers, previously the CEO of Cisco and now a enterprise capital investor, additionally notes that it’s also throughout dangerous instances when sturdy and even nice firms emerge.
“Virtually all the nice excessive tech firms in every era — firms like Cisco, Salesforce, Oracle, Microsoft, Google — had been those that broke away throughout an financial disaster,” he informed Enterprise Insider. “[A downturn] limits your competitor’s means to entry the cash. It additionally limits the variety of firms that come at you: You are in a position to break free and achieve market share at a a lot quicker tempo.”
One other enterprise capital investor, president of Dell Applied sciences Capital Scott Darling, agreed that some startups are already “benefiting fairly considerably from this atmosphere,” notably due to the sudden pivot to distant work.
Whereas he’d quite not attempt to predict “the following Google” as a result of “making an attempt to guess the following trillion greenback firm might be not going to be a profitable train,” he, Chambers, and others weighed in a single which firms from their portfolios that they thought would doubtless be extra profitable than their friends.
Listed below are 15 tech startups that Darling, Chambers, and two different VCs plucked from their portfolios that they count on to come back out of the COVID-19 disaster stronger than earlier than: