We discovered which companies were unprepared to handle a devastating occurrence at the start of the pandemic. Now, as the world slowly reopens in the wake of vaccinations, we’re seeing which corporations that soared during the pandemic also lost their discipline in the aftermath. In the last two years, technology has become more important than ever for the services it provides to the regular person, whether it’s empowering a completely distributed workforce or allowing us to access health care through a screen. It became vulnerable as well.
The tech businesses that found product-market fit and demand beyond their wildest imaginations during the pandemic era were the same tech companies that recognized their success was at least partially contingent on a rare, once-in-a-lifetime event that would (hopefully) go away one day.
Throughout the crisis, every growth round, mega-valuation, stunning IPO pop, and total-addressable-market boost gave the impression of strength. However, the same tailwinds that fueled so much value creation also silenced cost-cutting discussions and plans for a future slowdown. Yet, as evidenced by recent news from Peloton and Hopin, a reckoning, or at the very least a re-correction, is beginning to play out.
In the last two years, technology has become more important than ever for the services it provides to the regular person, whether it’s empowering a completely distributed workforce or allowing us to access health care through a screen. It became vulnerable as well.
The tech businesses that found product-market fit and demand beyond their wildest imaginations during the pandemic era were the same tech companies that recognized their success was at least partially contingent on a rare, once-in-a-lifetime event that would (hopefully) go away one day.
Throughout the crisis, every growth round, mega-valuation, stunning IPO pop, and total-addressable-market boost gave the impression of strength. However, the same tailwinds that fueled so much value creation also silenced cost-cutting discussions and plans for a future slowdown. Yet, as evidenced by recent news from Peloton and Hopin, a reckoning, or at the very least a re-correction, is beginning to play out.
