Fiascos always present new opportunities for entrepreneurs. The dotcom bubble — which happened exactly 20 years ago — killed off companies like Pets.com but strengthened the likes of Amazon and eBay. Airbnb, Spotify, Uber, Dropbox, Adyen, Evernote and more all grew out of the economic downturn of 2008 (as many a venture capitalist likes to mention).
Even smaller-scale crises have been catalysts for startups. In France, the Icelandic volcano eruption of 2010 and the more recent metro strikes fuelled the rise of alternate means of transportation, like carpooling platform BlaBlaCar and electric scooters.
This is an opportunity — it’s time for the tech sector to seize it.
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We’ve already read about tons of startup layoffs. 1000 people at Yelp and another 1000 at Magic Leap, almost 1000 at Lyft, 45% of the workforce at Eventbrite, 30% at Bird. Layoffs Tracker has over 300 companies listed – including the likes of Houzz, Lending Club, MindBody, The Wing and more. Yet a majority of the companies mentioned are in the US, which is perhaps not surprising given that government support for furlough is not what it is in Europe.
In Europe, the perhaps most prominent startups to announce layoffs have been UK-based so far: Deliveroo, who cut staff by 15% this morning, or Monzo, who announced the closing of it’s 165-person office in Las Vegas, etc. That said, there are prominent startups in France (I’ll avoid mentioning names) that have had to downsize and yet there is absolutely no mention of it in the press. A few people mentioned a similar situation in other European countries (Germany and the Nordics, for example). So my question is: why?
Read More Are European Startups Avoiding the Topic of Downsizing?