A pandemic is for sure not something we would have chosen to live through this spring and summer. Borders are closed, people stay at home to isolate themselves and follow quarantine restrictions. The global economic fallout of the pandemic has had a great effect on businesses all over the world. Here are the industries that have suffered the most and may take months to recover from the crisis caused by COVID-19:
- travel companies;
- offline education;
- restaurants and many other similar businesses.
Giant companies find it hard to adapt to changes as quickly as small businesses can. Their stocks have dropped and are being bought up at a frantic pace. Stock exchanges themselves are buying them up, sometimes preventing investors from doing this. This means the market is going to change fundamentally.
Many other companies are forced to reduce turnovers, minimize expenses, and take other measures to stay afloat until they find a way to adapt to doing business in the new conditions.
Digital Startup Ecosystem Overview
The lack of survival experience in this situation requires first of all rethinking future prospects. This is where digital transformation startups, innovation and creativity come to our aid.
Investors are looking for startups that can quickly produce a variety of artificial respiration devices, COVID-19 diagnostics tests, masks, and PPE. In high demand are the companies that can test existing medicines for efficacy, find new vaccine approaches, and new therapeutic agents that large pharmaceutical companies are unlikely to develop fast enough.
People still need to eat. Food delivery businesses are experiencing a significant increase in the number of orders. To minimize the risk of infection during food package transfer, some delivery applications now provide contactless delivery.
People get used to working from home. Quarantine has changed WFH from a growing trend to necessity. Manufacturers of software and services for organizing work processes are doing their best to satisfy the extreme demand for tools for corporate communication, virtual meetings, and online training sessions.
What should be expected in the near future? IT technologies will create all the conditions for a rising startup and the implementation of business ideas in the online environment. At least 1 billion new users are expected to move online for:
- leisure time.
All of these businesses have unlimited growth prospects, and the rapid development in AI, VR, and AR contributes to this.
A Crisis Means It’s Time to Act!
Startups will provide all of us with completely new opportunities in the very near future, such as:
- traveling around the world and getting the same experience, but very cheap and completely safe;
- using VR and AR technologies to receive online education at the same level as provided by offline universities;
- watching theatrical performances, movies and TV shows with content set to our personal appreciations;
- engaging in e-sports and traditional sports under the guidance of the best coaches without leaving home;
- buying clothes and footwear after trying on their virtual double;
- and many, many new exciting possibilities we have never even dreamed about before.
Where does this lead? What is the future of startups? The new reality can be considered the beginning of switching to an economy of isolation, changing the behavior of consumers. If one leaves the house mainly for short walks but travels through virtual space, then why do they need an expensive car? Instead of boasting elite watches and jewelry, one can boast a cool tank or an airplane in a multiplayer game. Devices for self-diagnosis or smart home appliances will be popular as well.
How to Grow My Startup in These Conditions?
We all need to switch from the problems caused by COVID-19 to seeing the new opportunities and prospects. The crisis is creating the best conditions for economics startups and opens new niches for your business. Stress caused by a crisis pushes you to develop.
The Axisbits team will help you work on the most daring and innovative startups in any field related to IT-technologies. We can provide the best solution that will ensure the effective start of your project. Just reach out to us, and let’s create a highly demanded service together.