Wow what a year 2020! For many of us it was probably one of the most eventful years of our lives; it was challenging at times, forced us act, work and socialise differently and the term "social distancing" became mainstream. But despite all this 2020 was a milestone year for the technology ecosystem we saw record valuations for businesses such as Tesla and Afterpay but also amazing growth across many different sectors.
As a kickoff for 2021 we wanted to talk about three key reflections of 2020 and what I think they mean for 2021;
It has been coming for a long time now but in 2020 we saw many eCommerce businesses go from seven-digit revenue businesses to nine-digit revenue businesses in the space of six months. The explosive growth experienced in the sector has been so strong that we often heard comments such as "if your business did not double during Feb - April you probably failed". There is no doubt eCommerce is going to be the dominant shopping experience and I dearsay the same pain that the media sector went through with digtial is going to be felt by the retail sector.
SAAS businesses generally faired very well last year. The majority of our customers were able to grow and in many cases accelerate their growth during covid. Businesses such as Canva are clearly going from strength to strength and doing incredibly well. It is clear that SAAS continues to be a source of great opportunity for Investors and Founders and we are expecting this year to be no exception. It is fair to say the last ten years saw the rise of SAAS businesses but 2020 showed us that may be just the tip of the iceberg - we are particularly excited by many of the new PLG businesses we started to see.
Going into 2020 our definition of deep technology was "businesses that require a longer product development cycle often due to deep R&D efforts". Many of the businesses we saw in this area going into 2020 were either data or hardware companies. Coming out of 2020 and into 2021 we are having to include green energy and food technology in this category. From Clean Meat to Solar we are seeing some exciting things occur. Interestingly many of these businesses have a mixed founding team of technology and non technology executives but the method in which they are being built is very much in the mould of technology business - data driven, customer focused, product orientated. So we feel there's an opportunity for these businesses to potentially grow overtime at the pace and scale which a technology business grows exists.
These are our top three reflections - there will be more to come. Stay tuned and looking forward to sharing a great 2021 with you.
Before answering that question lets pause for a second and reflect on the last 24 hours.
How to expand your business into Lisbon. Hear from a few experts on the benefits, plus unmissable hotspots!
At Think & Grow, we investigated what “growth” means in the context of the Australian technology ecosystem.
There is a saying in the Australian tech industry that you have probably heard before “3 years ahead”.
We discuss all things strategy for scaling a business, after Job has successfully built one of the worlds largest crowdfunding platforms, OurCrowd.