The rude awakening for Boston tech. my thoughts as a Boston tech Founder on the current state of Boston tech, the call to create now, and a future of 1,000 new Boston companies by EOY 2022.
Last month was the beginning of a global pandemic.
And I can honestly say that I believe there is no better time to start a company than right now.
The global pandemic is changing the Boston tech ecosystem… FAST.
This black swan event has Boston tech scrambling… and it’s soon to bring Boston tech to its knees. Layoffs have occurred at dozens of tech companies. 10,000+ people within all disciplines have hit the open market within 30 days. Even engineers are being cut. Blasphemy!
No department is safe.
Several industries in Boston have been decimated.
Many companies in the B2B, travel, and restaurant spaces have hit concrete walls.
Toast, EZCater, Hopper, and others’ IPO dreams are not shattered (they will ultimately be ok)… but are almost certainly significantly delayed. They will push their teams to do more with less, stockpile cash, and be much more cautious. Of the ~150 companies I regularly track, there are 20 candidates on the market for everyone open role. Yes. 20 to 1…
There’s a harsh reality that people who were recently laid off are starting to realize now: there are no jobs.
But, it’s not all doom and gloom! Several industries are growing exponentially.
Other companies in the consumer space in eCommerce, e-learning, and insurance are seeing massive growth.
People are upgrading their dusty office desks with new ones (Wayfair). They are having wine, beer, and liquor delivered for their virtual happy hours (Drizly). They are sending cards (Lovepop), buying meat (ButcherBox), getting pills (PillPack), and refinancing their homes (OwnUp).
It certainly is a new world.
There’s a massive opportunity to create NEW companies in this pandemic uncertainty.
Every industry around you is changing.
New habits are forming in commerce, the trades, healthcare, education, supply chain, video conferencing and remote work, on-demand, commercial real estate, residential real estate, automation, travel… planes, trains, automobiles… These problems aren’t solved. These things aren’t fixed. In fact… many of them are breaking.
And while we can double down on the Wayfair’s, PillPack’s, Drizly’s, and others of the city doing well right now… more Bostonians are going to have to START new companies.
So what can you do to help? A lot!
People, who want to be founders: If you’ve wanted to start something, whether unemployed or not, don’t “have an idea?”… Here are 100 of them to start you off: Smart home installation, special needs pet training, remote athlete coaching, mobile bike tune-ups, chimney cleaning, graffiti removal, mold removal, hot tub wiring/installation, deck staining, and Christmas light installation. The list goes on and on. All ripe for change. All real problems. You don’t have to build the next Facebook or Google. Niraj and Steve of Wayfair started selling racks and stands online. Now they are on top of a $10 Billion growing empire. I challenge you to think of industries and ideas that are ripe for change. Take the leap.
Operators from Boston’s biggest tech companies: We have to encourage company alumni leaders from Wayfair, Hubspot, CarGurus, and others who have seen growth, to attack a customer problem and create something new. Those public companies printed thousands of smart, hard-working, decisive, transparent, fast-moving, killer employees. Let’s engage these people and give them a little push and organize these people together as we have with Wayfair alumni and The Wayfund. If you’re from Hubspot, Rapid7, DataDog, or another company that has gone public, here’s a running start for you. What if Boston helped support 1,000+ new companies by EOY 2022? Impossible? Says who. Take the leap.
VC’s: On the VC side, I’m challenging you to dive in deeper with new opportunities to fund and provide expertise. Example: Take a look at the Everyday Economy Accelerator initiative Nextview is taking right now. Unbelievably awesome. They get it. Take the leap.
Massachusetts State Government: We have to encourage the government to look out for first-time entrepreneurs. People are encouraged to buy starter homes in America via Uncle Sam and the tax code. But are people encouraged to start their first company? Ummmm. Not really. When was the last time you felt MOTIVATED by the government to start a company? Likely never. Why? Sharktank encourages it every Friday night. Mark Cuban is championing entrepreneurs on CNBC, GMA, and Bloomberg weekly. How about the government brings that same type of enthusiasm?!?!? Sure the SBA is there (and visible right now), but what else? Governor Baker cares about making improvements here in Massachusetts. He and his cabinet are open to feedback. But, we need to push the agenda. I don’t have all the answers here, but with their support, we can improve things. Submit your own ideas here. I’ll take them to the Governor and his team to give your feedback. Take the leap.
Take the Leap
Your highest likelihood of success very well could be now, in this dark time. Don’t let it pass you by.
Whether you create the next Uber, Airbnb, or Slack (all of which started in the last recession btw), or create a new solution from the hundreds of ideas listed above… opportunity exists.
Take the leap. It’s go time.