coronavirus
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The stakes keep getting higher for American discount brokerage Robinhood, which today disclosed that it has added hundreds of millions of dollars to its previously disclosed funding round.
Including the $280 million that the company had already announced, Robinhood said that it was “pleased to share” that it “raised an additional $320 million in subsequent closings.” Its now $600 million funding round brings its post-money valuation to $8.6 billion. Fortune first reported the news.
(A detail, but the new capital is part of the same round as it was raised at the same price. TechCrunch reported when the company’s $280 million round was announced, the fintech company was worth $8.3 billion. Another $300 million in capital at a flat share price means that the company’s valuation should have risen by only the dollar amount added. As it did.)
Robinhood has had a good business year, even if some of its practices have come under fire. The company pledged to tighten up parts of its platform relating to more exotic trading after the suicide of one of its users, for example; a topic that TechCrunch discussed at length last week.
What is inescapable is that Robinhood is having one hell of a year. When it might go public isn’t clear, especially as the private company is having no problem raising capital without an IPO. But as its value continues to rise, it becomes an increasingly remote acquisition target.
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Higher education is being transformed by COVID-19, but it goes beyond universities simply “going remote” to try and cope. The changes afoot are holistic, transformative and a long time coming. These changes will extend to recruiting, training and, ultimately, how employers fundamentally go about finding potential candidates for their organizations. It also will change the very nature of higher education itself.
Before COVID-19, would-be employees would take traditional educational routes to gain employment. High school led to college, which (sometimes) led to grad school. Almost all of this was done in an immersive campus setting where students tried to figure out not only who they were but what they wanted to do and with whom they wanted to do it. This path required enterprises to react specifically to an entrenched educational model that determined how would-be employees would be groomed and trained — be it for a specific skill set or cultural fit — all in an effort to determine who the right person was for them.
This model has grown bloated over the years, and the industry that supports it — projected to register $10 trillion globally by 2030 — has become increasingly vulnerable to the kind of technology-driven change that, over the last decade, has been disrupting old-school industries across the board, from retail to logistics to real estate and more.
“A reckoning is coming for schools and universities,” Scott Galloway, a professor of marketing at the NYU Stern School of Business, told CNN in late May. “We’ve raised prices 1400% but at the same time, if you look at innovation … if you walked into a classroom today it wouldn’t look, smell or feel much different from what it did 40 years ago.”
In a blog post from April, Galloway further projected that COVID-19 would lead to a culling among universities. As with retail, he suggested — where closures skyrocketed from 9,500 stores in 2019 to more than 15,000 in 2020 — there will likely be dozens, if not hundreds, of colleges and universities that simply do not recover from the virus. He also predicted a sustained drop in applications at four-year universities for the first time in decades.
“The blow to the world of higher education was bound to come,” said Roei Deutsch, co-founder and CEO of live video course marketplace Jolt Inc. during a talk on the podcast, Coffee Break. “There is a higher education bubble, something there does not work in terms of cost versus what students receive in return, and you can say that the coronavirus crisis is the beginning of this bubble’s bursting.”
While the virus may hasten an overdue transformation in higher education, it also will create opportunities for startups that create alternatives to traditional higher education. As with many other sectors, though, this will be less about COVID-19 acting as a radical change agent and more about the virus accelerating what was already taking place behind the scenes, primarily within global enterprises.
Over the last decade, enterprise learning and development (L&D) has grown in importance as various technologies proliferated throughout large organizations. The global corporate e-learning market is estimated to grow up to $30 billion at a 13% compound annual growth rate through 2022. This growth was driven in large part by the increased importance of matching workforce capabilities with actual required skill sets.
Learning experience platforms (LXP) and learning management systems (LMS) are core products used by enterprises in L&D. They are used to monitor, track and administer employment learning activities. They usually serve as digitized online catalogs. Learning software is primarily designed to create more personalized learning experiences and help users discover new learning opportunities by combining learning content from different sources, while recommending and delivering them — with the support of AI — across multiple digital touch points, e.g., desktop applications, mobile learning apps and others.
Significantly, these same online education tools have also begun to be adopted by many colleges and universities as they look for ways to cope with COVID-19. This is helping to transform thinking around these applications, tools and platforms. Enterprises, which had already been adopting these tools, are now reconsidering their potential. It does not take a colossal leap of imagination to see what lies ahead.
Instead of building training academies and LMS systems to help continually train people for new or expanded roles within an organization, enterprises will now target the front end of the recruiting funnel where higher education begins. With university life transformed by COVID-19, it has opened up the possibility for enterprises to reassess how they participate in that funnel. The potential for global enterprises to own the university experience is, suddenly, very real.
Imagine leveraging these existing education and training platforms to create hyperspecific curricula for enterprises. A gig economy for professors who have been displaced from shuttered universities could provide the online faculty. They’ll design a curriculum specifically suited to an enterprise’s needs.
These new enterprise-driven, online university systems will vet people for academic excellence and cultural alignment to determine who they want to educate and, ultimately, hire. And all of it will feed them directly into their own systems. These would be university systems not unlike what we see today with, say, The U.S. Naval Academy, where a tuition-free education comes with an obligation to serve for a period of time. Others have speculated that a kind of hybrid, for-profit model that blends universities and global enterprises may also emerge.
“MIT/Google could offer a two-year degree in STEM,” suggested Galloway. “MIT/Google could enroll 100,000 kids at $100,000 in tuition (a bargain), yielding $5 billion a year (two-year program) that would have margins rivaling … MIT and Google. Bocconi/Apple, Carnegie Mellon/Amazon, UCLA/Netflix, Berkeley/Microsoft … you get the idea.”
Higher education is not the only system poised for fundamental transformation. The U.S. staffing and recruiting market, whose total size was already predicted to decrease 21% due to the coronavirus outbreak, could also see changes in how they operate. No longer will enterprises feel obliged to recruit at universities or utilize the tools, platforms and resources necessary to identify recruits coming out of these outdated systems. Now, they’ll have a direct funnel to employees perfectly attuned to their needs. This would be a boon for enterprises that would not only create novel profit centers in their organizations but would also avoid the costly and inefficient process of searching for employees common to most recruiting models today. The savings are not insignificant.
The cost of a bad hire can reach up to 30% of the employee’s first-year earnings, according to the U.S. Department of Labor. Undercover Recruiter looked at misadventures in hiring potentially costing enterprise $240,000 in expenses related to hiring, compensation and retention. One study found that 74% of companies that admit they’ve hired the wrong person lost an average of $14,900 for each bad hire, according to CareerBuilder.
Then there are the ancillary benefits for students — the cost of higher education has been skyrocketing for decades, and student debt has reached unacceptable levels, with diminished earning power associated with degrees. A tipping point is fast approaching: One study demonstrated that a college degree decreases in value as the number of graduates increases. So, in Sub-Saharan Africa (where degrees are relatively rare) a degree will boost earnings by more than 20%. In Scandinavia (where 40% of adults have degrees) that number drops to 9%.
These new, enterprise-specific universities would provide real, tangible ROI on every education investment dollar made. The promise of specific jobs upon graduation with good salaries is doubly important in a shaky economy. As universities continue to price themselves out, they’ll have a tougher time justifying their costs, particularly when juxtaposed against an online educational system that feeds directly into Google, Twitter or Microsoft. It would likely prove irresistible for many students.
The secondary effects of COVID-19 as it relates to higher education are still not clear, but a possible picture is beginning to emerge. Recruiting could have to transform who they target and how (and when) they go about it. A burgeoning industry that has been supporting a steadily increasing appetite from enterprises for digital education and training could be transformed overnight and grow by leaps and bounds. Students could see debt cut in half and have a clear path forward toward employment. Whatever the ultimate landscape is that emerges, the changes in store for universities and colleges will undoubtedly be unpleasant.
“I think we’ve stuck out the mother of all chins and the fist of COVID-19 is coming for us,” Galloway told CNN. “Think of another industry that charges 100K and gets 90-plus points of margin. Other than a pharmaceutical for a drug that cures a rare cancer, maybe, what other product gets that kind of margin? Quite frankly, we’ve had this coming.”
That some kind of change is coming seems clear, but whether a paradigm shift in education is a good thing is less so. Like most industries disrupted by software and technology, tremendous value will flow to millions of consumers as technologies drive market efficiencies. There will be jobs that vanish or are transformed and there will be new jobs that are created to satisfy the new way of doing things. Major global enterprise and tech companies stand to profit the most from this transformation, with more wealth and power flowing into the hands of the FAANGs of the corporate world.
There will also be a reshaping of priorities in higher education as intellectual discovery, cultural appreciation and individual growth — the hallmarks of a campus-based liberal arts education — are replaced by the pursuit of a narrowly defined set of vocational skills and corporate efficiencies. The implications of global enterprises wading into higher ed will change not only how we educate, hire and train people but how we fundamentally think about and value higher education, as well.
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If you’re an angel who invested in a startup that was meant to go public in 2014, you might be getting a little bit impatient. High-risk, high-reward investing has lost its shine in this environment: the stock market is a mess these days, and you want your cash back.
Enter recapitalization events, where startups restructure their entire cap table to squeeze out old investors, bring on new ones and shift the way equity and debt is managed. For investors, it’s a killer way to enter a company on friendlier terms than normal (read: desperation), and a nice way to get liquidity on a startup you’re betting on.
For founders, it’s rarely good news, as departing investors is not a metric they’re going to add to the pitch deck. As one investor said on background, the spur of coronavirus-related recapitalization events shows “hella dilution for desperate times.”
That’s what makes Workhuman’s transparency with its recent recapitalization event all the more enticing.
Last year, the human-resources platform brought in $580 million in revenue from customers like LinkedIn, Cisco, J&J and other clients. In April, business grew 40%. Co-founder and CEO Eric Mosley says business has grown five times in size since the company pulled back from its 2014 plans to IPO. Workhuman hasn’t raised a single venture round since 2004 (and doesn’t plan to any time soon).
Being conservative has paid off; although Workhuman has operated for nearly two decades, Mosley says he thinks the company is still at the “tip of the iceberg.” The company recently had a recapitalization event to sell the stakes of its earliest investors, who cut a $200,000 check more than 20 years ago.
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The biggest story to come out of the post-March stock market boom has been explosive growth in the value of technology shares. Software companies in particular have seen their fortunes recover; since March lows, public software companies’ valuations have more than doubled, according to one basket of SaaS and cloud stocks compiled by a Silicon Valley venture capital firm.
Such gains are good news for startups of all sizes. For later-stage upstarts, software share appreciation helps provide a welcoming public market for exits. And, strong public valuations can help guide private dollars into related startups, keeping the capital flowing.
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For software-focused startup companies, especially those pursuing recurring revenue models like SaaS, it’s a surprisingly good time to be alive.
Indeed, after COVID-19 hit the United States, layoffs and rising software sales churn were key, worrying indicators coming out of startup-land. Since then, the data has turned around.
As TechCrunch reported in June, startup layoffs have declined and software churn has recovered to the point that business and enterprise-focused SaaS companies are on the bounce.
But instead of merely recovering to near pre-COVID levels, software stocks have continued to rise. Indeed, the Bessemer Cloud Index (EMCLOUD), which tracks SaaS firms, has set an array of all-time highs in recent weeks.
There’s some logic to the rally. After speaking to venture capitalists over the past few weeks, notes from EQT Ventures‘ Alastair Mitchell, Sapphire’s Jai Das, and Shomik Ghosh from Boldstart Ventures paint the picture of a possibly accelerating digital transformation for some software companies, nudged forward by COVID-19 and its related impacts.
The result of the trend may be that the total addressable market (TAM) for software itself is larger than previously anticipated. Larger TAM could mean bigger future sales for and more substantial future cash flows for some software companies. This argument helps explain part of the market’s present-day enthusiasm for public tech equities, and especially the shares of software companies.
We won’t be able explain every point that Nasdaq has gained. But the TAM argument is worth understanding if we want to grok a good portion of the optimism that is helping drive tech valuations, both private and public.
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As the world continued to cope with the impact of the coronavirus outbreak, the second quarter of 2020 became the largest yet for mobile app downloads, usage and consumer spending. According to new data from app store intelligence firm App Annie, mobile app usage grew 40% year-over-year in the second quarter of 2020, even hitting an all-time high of over 200 billion hours during April. Consumer spending in apps, meanwhile, hit a record high of $27 billion in the second quarter. And app downloads reached a high of nearly 35 billion.
The growth in app usage has been fueled by social distancing and lockdown measures, as countries around the world try to quell the spread of the novel coronavirus.
Image Credits: App Annie
In India, for example, time spent in apps grew 35% in Q2 2020 from Q4 2019. Italy and Indonesia saw growth of 30% and 25%, respectively. In the U.S., time spent in apps grew 15%.
App Annie says now the average user is spending 4 hours and 20 minutes per day on their smartphones.
Image Credits: App Annie
But consumers aren’t just launching apps they already have installed on their phones — they’re also downloading new ones. In the second quarter, consumers downloaded nearly 35 billion new apps, an all-time high.
Google Play accounted for 25 billion of those downloads, representing 10% year-over-year growth. India and Brazil were the the two largest markets for Google Play in the quarter.
Image Credits: App Annie
iOS downloads grew 20% year-over-year to reach nearly 10 billion. The U.S. and China were iOS’s biggest markets for downloads, but the U.S. and Saudi Arabia saw the most quarter-over-quarter growth. The latter was likely attributed to a nationwide lockdown and school closures, driving app downloads in the country to a all-time high in April and 100% year-over-year growth on iOS.
Games were downloaded at record levels in the quarter, App Annie noted, totaling 14 billion games. In the first week of Q2, weekly mobile game downloads broke records at over 1.2 billion, and weekly download levels remained at 1 billion on average throughout the quarter, up 20% year-over-year.
Image Credits: App Annie
Non-gaming apps represented over half (55%) of the new downloads on Android and 70% of those on iOS.
More specifically, top categories outside of games included “Tools” and “Entertainment” on Google Play and “Photo and Video” and “Entertainment” on iOS. But other categories saw strong growth, including “Business,” “Health & Fitness” and “Education,” which saw quarter-over-quarter growth in downloads of 115%, 75% and 50% respectively on Google Play.
On iOS, “Health and Fitness,” “Shopping” and “Medical” apps saw strong quarter-over-quarter growth of 30%, 25% and 20%, meanwhile.
With record downloads and usage, consumer spending also grew significantly as a result, particularly among streaming video services.
Image Credits: App Annie
In the second quarter, consumers spent a record $27 billion in apps, up 15% year-over-year to $17 billion on iOS and up 25% to $10 billion on Android.
Games accounted for $19 billion of the spend, up 15% quarter-over-quarter. Google Play saw sizable growth at 25% quarter-over-quarter, which was 2x the growth rate on iOS.
Image Credits: App Annie
Non-gaming apps were 35% of the spend on iOS. The U.S. and China the largest contributors in both games and non-game apps on iOS in the quarter. However, the U.S. notably took back the top position as the largest market for consumer games — a spot previously held by China — with 30% quarter-over-quarter growth in Q2.
Non-games were 15% of the spend on Google Play. The U.S., Japan, and South Korea were the largest markets in both non-games and games alike on Google Play.
Top Google Play categories in addition to “Games” included “Social” and “Entertainment.” Growth in the “Entertainment” category was driven largely by Disney+ and Twitch, App Annie noted.
On iOS, “Entertainment” and “Photo and Video” were the largest categories by consumer spend, in addition to “Games.” Here, TikTok drove growth for the “Photo and Video” category, becoming the No. 1 top-grossing app on iOS App Store globally in Q2 2020 thanks to sales of virtual gifts used to tip streamers.
Image Credits: App Annie
While much of the activity taking place on mobile devices during the pandemic is related to having fun — like watching videos or playing games, for example — several of the top apps in the quarter were work-related.
Zoom, for instance, became the No. 2 of most downloaded app globally in Q2 2020. Google Meet was No. 7.
TikTok, meanwhile, was the top app by downloads and spending, and the No. 7 by monthly active users. That will likely change in the months ahead, due to its ban in India. A proposed U.S. ban has also recently seen TikTok rivals gaining ground. Amid this disruption, local competitors in India have seen increased usage, and elsewhere, competitors like Byte and Likee have surged.
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Any disaster will have its harshest repercussions on people who were already marginalized. It’s unsurprising, then, that when it comes to jobs and businesses, the COVID-19 lockdown is impacting women and ethnic minorities more than anyone else.
In April, unemployment shot up to 15.5% among women, 2.5% higher than for men. The rate was also higher among African Americans and Latinx people than for white people, with Latinx reaching a record 18.9% unemployment.
Women, especially from more disadvantaged backgrounds, are going to be taking the lion’s share of caregiving responsibilities at home during the pandemic, making them more vulnerable to job cuts. At the same time, underrepresented employees in general may feel more marginalized than ever as job security is put on the line.
It’s been hard to get to where we are on diversity and inclusion. Slowly but surely, diversity and inclusion have become a highly visible element of any company. But as COVID-19 turned up the pressure for businesses around the world, that progress came under threat as D&I initiatives took a back seat. The killing of George Floyd and the subsequent protests reignited D&I efforts in magnitude, but how can we ensure that, as time passes, those efforts are maintained with energy and determination?
This may be the shock to the system that will make business leaders realize that diversity is not an accessory or PR stunt — it is an integral part of the daily lives of each and every member of your team. Today’s consumers and your co-workers demand socially conscious companies, which is why D&I is vital to making any startup a well-rounded business. It’s also imperative for supporting economic recovery on a larger scale. Forgetting to preserve and improve D&I as we battle through COVID-19 will not only set us back years in terms of equality, it will worsen our collective chances of getting through this turbulence unscathed.
It’s understandable that most startups today will be in survival mode. But D&I cannot be cast aside as a nonessential part of your business. It’s quite the opposite. More diversity is a known indicator for better economic performance and improves a business’ chances of thriving through a recession.
We often hear about how diversity means more innovation in a company. Consider just how important this is today. Facing a crisis with no precedent, weighing up a variety of insights and solutions is vital to finding an intelligent lockdown strategy. As business leaders, we need to know what the world around us looks like right now, and that means knowing what people of all backgrounds are experiencing.
We also can’t afford to not take into consideration the long-term effects of today’s actions. Survival can’t mean usurping what your company stands for. If you sacrifice diversity now, you might retain employees for the time being, because they’re scared of being jobless. But you will have undermined the trust that your workers place in you and you will be sure to lose them far more easily once the situation eases. This is very true for customers too — the crisis is driving the public to support purpose-driven and diverse businesses more than ever, and you will be left out if you don’t meet those values.
So how can a startup keep diversity a priority in this strange new world? Sure, you may not be hiring, but that’s not the only way to improve diversity. Take this time to revisit your internal culture. The virus is forcing us to see our business from different angles — we’re looking into the homes of our co-workers, hearing about the personal issues affecting their work lives and about the work issues affecting their personal lives. Let’s make sure your company culture is not part of the problem.
You need to be accessible. Are some of your employees scared to speak up about their issues? Is there a big morale problem that you haven’t been able to alleviate? If so, then you need to work on making your workspace more inclusive, open and friendly. This is more than building up team spirit with morning coffee Zoom get-togethers and after-work networking. It’s about weeding out any systems that bring repercussions to people who voice their concerns; it’s about encouraging them to do so; it’s about recognizing every member of a team and every person in a meeting, not just the executives present.
The lockdown has shown that many people can work remotely, effectively. Can you use this in future to give employees a greater chance of success — perhaps those who live far from the office, or who have children or elderly relatives to care for? Many HR departments are probably focusing efforts away from hiring at the moment and could instead be put in charge of employee success, which means identifying and addressing the unique concerns of each of your staff (you might even consider assigning a full-time staff member to this role).
This is key to making your company a welcoming place for underrepresented employees who are often more wary of their circumstances than their co-workers, both now and in the future. It will help them grow and want to stay in the company, as well as attract a more diverse employee pool in the future.
In case you are hiring, there are innovative solutions to help you attract more diverse applicants to your company. Joonko’s technology integrates to your applicant tracking system to boost the visibility of underrepresented potential hires. Pitch.Me aims to tackle bias by presenting candidate profiles anonymously, including only relevant information about experience and skills but with no information regarding gender, age or ethnic background. Services like DiTal help tech businesses connect with potential employees from diverse backgrounds.
Before COVID-19, the key performance indicators for your business might have been the number of sales per rep, or the number of leads generated in a week. Those quotas are now unrealistic, and more importantly, they’ll be tougher to reach for employees with less time on their hands. That means people with more caregiving responsibilities — often women — or with less disposable income, and statistics show that people from ethnic minorities are more likely to be affected by the virus.
You have to create a work environment in which people with less time and resources can still achieve their professional goals. We typically hear that 80% of the most valuable work takes up 20% of a team’s time; well, let’s make sure your staff is focusing most of their efforts on that 20% of valuable energy. Build a new business plan that reassesses what the company needs to achieve in the near future, and set new metrics that hyperfocus on that bottom line. Think about how important it is to each of your co-workers’ morale to be able to meet their goals day in day out, despite today’s challenges. Furthermore, being adaptable for the benefit of your staff is an admirable quality that will not easily be forgotten.
An important note — helping everyone reach success means giving everyone the resources to do so. No one in your company should be unequipped to this “new normal,” which means good laptops or devices and speedy internet. Don’t hesitate to invest in people who need it.
Career development is vital for underrepresented employees, for whom upward mobility is always harder. People from minority backgrounds tend to have less robust business networks, exactly because they are the minority in the business world. We can never stop fighting this vicious cycle.
So take a look at your team and think about who you can help ascend in their career. Prioritize underrepresented people now because they are more likely to get hit harder by the lockdown and have a tougher recovery. Even if you don’t see it from an altruistic perspective, including underrepresented employees in your leadership now will lead to better economic local recovery and improved outcomes for your company.
One option is sponsorship programs in which you or other senior leaders advocate on behalf of selected employees (as well as acting as their mentors). Think of it as equally distributing the networks and influence accumulated by business leaders among a more diverse pool of people.
We’ve looked inward, now let’s look outward. How can you change how your industry looks, even in times of crisis. To reach the huge visible changes we’ve seen in, for example, branding in the fashion industry, took influential people making decisions at powerful tables. But it would be ironically easy to see things regress to a more heterogeneous state.
Stopping this from happening means making those big decisions yourself, and uniting others in joining you. Leverage your brand and bring your internal diversity to the forefront of everything you do — the mentors who give their time to startup organizations, the speakers you put forward for online events. Make a conscious push for your external marketing to display as much diversity as possible, especially amid fears that the advertising space will compromise its diversity standards in response to COVID-19.
If you have the resources, help struggling founders get through the lockdown. There may be small or mid-sized women or minority-led companies within your community that need your support. If you’re sending employees care packages and gifts, make the extra effort to source them from underrepresented local businesses. It’s not hard to do — there are organizations that can help you connect to such companies around the United States, such as Women Owned’s business directory and Help Main Street.
Large companies can work with Hello Alice to directly fund smaller companies founded by every underrepresented group in the United States, from veterans to LGBTQ+. IFundWomen is a large network of women-founded businesses you can choose to fund — or join — and it has a wing specifically for businesses owned by women of color. As a business leader you can always be seeking out diverse founders to collaborate with; For example, check out this amazing list of Latinx founders catering to the United States’ enormous Latinx markets, as well as finding solutions to improve diversity in business.
The NAACP has fought for equal rights for people of color for over a century. You can support them and their ongoing work, which ranges from campaigning for crucial reforms to spotlighting emerging Black-owned businesses.
Now’s not the time to slack on diversity. As tempting as it might be to think of it as an accessory, it’s just as vital now for your business to get through the pandemic and to stop your entire industry from losing decades of hard-earned progress in building a more equal society.
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Most people would agree that a chief revenue officer is a pretty significant hire, but I have yet to meet mine in person. Right now, our only face-to-face interaction is over video. In fact, that’s how our relationship began — like many business leaders during this pandemic, I had to hire Todd through a series of video calls.
The pandemic has caused me to question and reevaluate many of my own assumptions. This not only led me to hire our CRO remotely, but it is ultimately why I also decided to allow employees to work from home until 2021.
While it’s tempting to call this a pivot, those who have worked with me would probably describe it more accurately as a flip-flop. I used to believe that you could build an in-person culture or a remote work culture, but that a hybrid of the two was destined to fail.
The realities of COVID-19 have not just changed my outlook, but transformed the way I think about how work should get done —and how leaders need to show up for their team, even if they can’t “show up” in any physical sense.
Before the pandemic, the debate over remote work revolved around its perceived impact on productivity, collaboration, employee engagement and culture.
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Games and esports analytics firm Newzoo released its highly cited annual report on the size and state of the video gaming industry yesterday. The firm is predicting 2020 global game industry revenue from consumers of $159.3 billion, a 9.3% increase year-over-year. Newzoo predicts the market will surpass $200 billion by the end of 2023.
Importantly, the data excludes in-game advertising revenue (which surged +59% during COVID-19 lockdowns, according to Unity) and the market of gaming digital assets traded between consumers. Advertising within games is a meaningful source of revenue for many mobile gaming companies. In-game ads in just the U.S. drove roughly $3 billion in industry revenue last year, according to eMarketer.
To compare with gaming, the global markets for other media and entertainment formats are:
Of 7.8 billion people on the planet, 4.2 billion (53.6%) of whom have internet connectivity, 2.69 billion will play video games this year, and Newzoo predicts that number to reach three billion in 2023. It broke down the current geographic distribution of gamers as:
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Nearly 40 million Americans are unemployed, and a recent study that examined more than 66,000 tech job layoffs found that sales and customer success roles are most vulnerable amid COVID-19. In response, some quarters of Silicon Valley are abuzz about a long-standing technology: reskilling, or training individuals to adopt an entirely new skillset or career for employment.
As millions look for a way to reenter the workforce, the question arises: Who really benefits from reskilling technology?
That depends on how you look at it, said Jomayra Herrera, a senior associate at Cowboy Ventures. Reskilling for a well-networked manager looks a lot different than it does for someone who doesn’t have as much leverage, and the vast majority of people fall into the latter. Not everyone has a friend at Google or Twitter to help them skip the online application and get right to the decision-makers.
Beyond the accessibility offered by live online classes, she pointed to the difference between assets and opportunities.
“You can give someone access to something, but it’s not true access unless they have the tools and structure to really engage with it,” Herrera said. In other words, how useful is content around reskilling if the company doesn’t support job placement post-training.
Herrera said companies must give individuals opportunities to test skills with real work and navigate the career path. Her mother, who did not go to college and speaks English as a second language, is looking to pursue training online. Before she can proceed, however, she has to surmount hurdles like language support, resume creation, job search and other challenges.
All of a sudden, content feels like a commodity, regardless of if it has active and social learning components. It’s part of the reason that MOOCs (massive open online courses) feel so stale.
Udacity, for example, was almost out of cash in 2018 and laid off more than half of its team in the past two years, according to The New York Times. Now, like other edtech companies, it is facing surges in usage.
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The ongoing COVID-19 crisis has had a number of unexpected impacts on global economic activity — most of them negative. But the pandemic has also highlighted the need for alternative solutions to challenges where traditional solutions now prove either too costly, or too difficult to do while maintaining good health and safety practices. Near Space Labs, a startup focused on providing timely, location-specific, high-resolution Earth imaging from balloons in the stratosphere, is one company that has found its model remarkably well-suited to the conditions that have arisen due to the coronavirus crisis.
Near Space Labs is in the process of expanding its offering to Texas, with some imagery already collected, and the team in active conversations with a number of potential customers about subscribing to its imaging services ahead of launching the first full batch of collected imagery by early next month. Adding a new geographic location in the middle of a pandemic required Near Space Labs to move up the development on a way for it to easily ship and deploy its balloon-lofted imaging equipment using remote instruction with local technical talent. It’s now ready to effectively spin up an imaging operation very quickly, basically anywhere in the world, with simple, minimal training to onboard and equip local operators on-demand.
“With travel restrictions, we had to figure out how to deploy hardware in a fully remote way,” explained Near Space Labs’ CEO Rema Matevosyan. “That had been a challenge that we wanted to tackle at some point, for our scalability — but instead we had to tackle that ASAP. Today, I’m really proud to say that the Swift, our robotic vehicles, are able to be shipped anywhere on the globe in a small suitcase. And with a few videos and a manual, it’s super easy to train new people to launch.”
Swift is basically a sophisticated camera attached to a balloon that flies between 60,000 and 85,000 feet, with short duration flights that can nonetheless capture up to 270 square miles of imagery at 30 cm per pixel resolution in a single pass. Swift is also designed to be able to go up frequently, making trips as frequently as twice per day, and it’s designed to provide quick turnaround times for processed images, compared to long potential waits for imaging from geosynchronous or even LEO satellites based on orbital schedules, ground station transmission times and other factors.
Image Credits: Near Space Labs
And because Near Space Labs can basically ship its imaging equipment in a suitcase and have just about anyone train quickly to use it effectively, versus having to build a satellite that requires delivery via rocket and operation by highly trained engineers, it can offer considerable savings versus the space-based competition — at a time when cost sensitivity for public institutions and the organizations looking for this kind of data has them reluctant to open their wallets.
“In these uncertain economic times, margins and fiscal responsibility become very important for people,” Matevosyan explained. “We have the perfect solution for that — our approach is very flexible, very low-cost. Even states are ‘bankrupt,’ — so everybody’s looking for ways to improve their margins, and to improving their spend.”
Matevosyan told me that Near Space Labs has seen an uptick in interest in its product from two directions as a result of the ongoing global economic shifts. First, there are customers who have traditionally sourced this imaging from satellite providers and who are looking for cost savings and a product that more closely fits their geographic and timing needs. Second, there are organizations looking to start using this kind of imagery for the first time, as an alternative to in-person inspection or sensing, because of the ways in which COVID-19 has put restrictions on workforces.
“COVID also put a spotlight in general on the remote sensing industry, because people are unable to, for instance, go down to the assets or the sites that they usually would check manually,” she said. “So that started looking into remote sensing solutions, and we saw an uptick in applications and signups to our imagery. One example industry where that’s happening is conservation. Conservation wasn’t a vertical that was super active in our pipeline. But suddenly with COVID, it became pretty active.”
Matevosyan says that it took Near Space just “days” to ramp a new technical team to be able to launch its Swifts in Texas, and that’s representative of the speed at which it can now scale to establish imaging basically anywhere in the world. Flexibility and scalability were always key assets of the business, she says, but the COVID crisis pushed that essential value to the forefront, and could help propel the company’s growth a lot quicker than expected.
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