Arjun Bhatnagar is cofounder and CEO of Cloakeda consumer-first privacy startup dedicated to bringing humanity back to the internet.
Hinterhaus Productions 2016
Coming out of the pandemic (finally), many of us started last year with a sense of relief and renewal—hopeful for normalcy or at least open to what the new normal might be. Then, unexpected global conflict and more economic uncertainty began to take shape, driving major shifts in the market. The swinging pendulum of investors all in, then all out, and the hard fall of Web3 and crypto are just some of the events that could have you reevaluating your optimism.
No one could blame you if you’re suffering from a case of whiplash. Although any of these (or all of them together) could throw the most fortified business into a downward spiral, learnings and insights are emerging that could benefit tech startups for years to come.
Here’s a quick snapshot of what I think we can expect as we ring in the new year and say goodbye to the old.
Longer Beta Periods
We’re seeing many more companies stay in beta longer, creating a huge advantage for startups and the users of their products and services. People today are seemingly more comfortable than ever using betas without question, enjoying the process of watching their new, favorite products and services iterate, evolve and change with speed. The idea of waiting for a product to be perfect to go to market is simply passé and will continue to be so.
In-Person Teams
After years of managing from afar, thanks to the disruptions of the global pandemic, we’re seeing a shift back to in-person work, especially in the startup world. Investors are demanding it, and young companies are in need of it to improve productivity. We’re able to make ends meet with endless Zoom calls, Slack messaging and Notion boards, but for startups, the iteration process is intense and requires the fluidity that comes from being together in one place.
Narrow Focus
The bar of getting a startup off the ground is so much higher today than it was a few years ago and will only continue to rise. The continued uncertainty of the economy and big companies becoming more adept at doing what you do well (even if not as fast) are driving the need for focus. You have to be able to build a product at their level of excellence with a fraction of the resources. The only way to do this is to stay hyper-focused and not shoot too wide. Prioritize what’s most important and disregard the nonnecessities to ensure you’re building in the right direction—tighter, better and faster.
Software At A Price
Paying for software is going to become the new norm. The information we need to provide to use free software has erased our privacy and caused an immeasurable amount of garbage in our lives. And we’re starting to understand that experiences can be better if we pay just a little bit for them. So, the way we’re going to solve this problem is by choosing to pay for and asking to be paid for the products and services that are most significant in our daily lives.
New Beginnings From Web3
Something will come out of the ashes of Web3 and crypto—the question is, what? So many were bullish on startups in this space. Billions have been invested. It’s inevitable that something will emerge to take us into the future. My bet is on innovation in privacy, but pay attention and see what gets leveraged—and who lands on top. The players that skillfully navigated the tumult of this year will be prepared for the next. Right now, there aren’t any market leaders—so it’s open for the taking.
Continued Aggregation
We’re going to keep seeing large companies buy small companies in an effort to improve experiences. When Figma was purchased by Adobe, it offered the perfect example of what was to come. Big companies will likely continue to expand their offerings by purchasing beloved, focused technologies that enhance their overall offering and provide a can’t-live-without-it experience. We should also expect to see like-minded companies acquiring and collaborating within similar sectors to make startups stronger and bring more robust offerings to the market.
So, let’s continue to embrace the uncertainty that lies ahead with optimism, knowing we’ll find more unique ways to iterate, innovate and collaborate. The tech startup space always leads the way, with its fast pace pushing us forward.
Here’s to a year of being dynamic in our thinking and resilient in our approach.
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