A crisis can feel like the end of the world.
Then 2008 rolled along and we found out what a true crisis looked like.
Or at least we thought we did.
The last few months have seen a global meltdown of unfathomable proportions.
The dot-com crash in 2001 truly was the bursting of a bubble.
Too many poor companies had been buoyed up by the wave of internet-induced hype.
When the party ended, the fundamental weaknesses of the UKs and the worlds dot-com scene were revealed.
Companies who had more solid foundations were, mostly, able to weather the storm.
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So, back in 2001 the only solution was to focus on old fashioned profitability.
IPOs were no longer an option, exits were scarce, so survival became the aim of the game.
Those with sensible, scalable businesses were able to cling on and ride it out.
Weathering the next storm
The 2008 financial crisis called for a different kind of leadership.
Then Lehman Brothers collapsed and we couldnt ignore it any longer.
With bank runs and bailouts even of the most famous names, everyone was deeply spooked.
But the market was in a stronger position than before.
Funding rounds collapsed, but others were saved by a recently augmented community of savvy VCs who saw opportunities.
The financial crash was drawn out over two years, and the recovery arguably took longer.
The silver lining today
Because the COVID-19 crisis has been like no other.
It hit the whole world in the space of a few weeks and no-one has been spared the impact.
Never have we felt so acutely aware of the global, interconnected nature of the economies we have built.
Startups in the travel and leisure space were totaled immediately by the speed of the fall-out.
Few others have been immune to the colossal economic and social shifts weve experienced.
Yet there are reasons to be cheerful when it comes to the UKs tech community.
Compared to 2001 and 2008, the startup ecosystem of 2020 is strong.
Alongside VCs, we have a wider investment landscape that is much more established.
Good ideas will continue to attract backing.
Better startups than ever before
What we also have are better startups.
Unlike in 2001, or even 2008, these businesses care about revenue.
Micro-payments and subscriptions to tech companies is de rigueur.
We are better at monetizing our offerings, and the offerings themselves are fundamentally better.
Founders who lived through 2008 and learnt the lessons are seeing their experience pay dividends now.
This isnt to paint too rosy a picture of what is a crippling time for many.
There will be scores of companies that cant weather this storm.
But there are glimmers of hope.
Our startup infrastructure is one of the strongest in the world.
The portfolio of UK-based tech companies is impressive, diverse, and well-backed.
VCs and access to funding might be clipped, but it wont disappear.
A crisis throws us into chaos, but technology provides the tools that enable life to go on.
