New technology makes it easier than ever to work and communicate remotely, which could be a good thing for future startups struggling to find investors. Could COVID lead to a positive outcome for struggling startups? (Image credit: pixabay)

 

The ongoing pandemic has impacted us in many different ways, from having family gatherings via Zoom to converting the living room into a makeshift office. It’s also had a major impact on the corporate world, including startups. Some startups have experienced a boom, particularly those in pharmaceutical and tech areas, while others, like those in entertainment and food, have seen a decline. But the pandemic may have an unexpected positive influence on startups, particularly those outside of Silicon Valley.

 

Most venture capitalists are hesitant to invest in startups too far from their homes. Many want to stay close for the ease of attending board meetings and handling due diligence at any notice. This makes it hard for startups outside of popular areas to get noticed. But after a year of conducting business remotely, this could change.

 

Quarantine helped many realize their work could be done remotely and, in some cases, done more efficiently than sitting in an office all day. After a year of conducting virtual meetings via apps like Zoom and Microsoft Teams, we’re starting to realize we don’t need to be in an office to get work done. The same could be said for reluctant venture capitalists. With tools and apps making it easier to communicate with each other regardless of location, venture capitalists may be more comfortable investing in startups far from home.

 

This prospect is good news not only for startups outside of the tech bubble but outside of the states. Virtual meetings and calls reduce the need to fly out to different cities or countries several times a year for conferences, meetings, and due diligence. Business can be conducted from just about anywhere. All you need is an app and a good internet connection. But time will tell if this will actually happen.

 

The biggest determining factor of a startup’s success during the pandemic is their industry. Forbes reports industries related to gaming, health, video conferencing, cybersecurity, eCommerce, and public cloud are thriving. Industries related to living entertainment, retail, restaurants, real estate, and travel are struggling. Certain industries may be doing well now, but as we start to come out of the pandemic, chances are things will take a dramatic shift. For now, businesses and startups are learning how to evolve in order to stay afloat during the pandemic and how to remain successful post-COVID.

 

Have a story tip? Message me at: http://twitter.com/Cabe_Atwell