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There is still much to be debated about remote work, office culture and how to manage distributed staff. There is still much debate about the future of work, with many companies having to delay their return dates due to the COVID-19 delta variant.
However, while big companies may muddle through the present, I believe that the debate has largely ended and that startups have won the argument.
Since the inception of COVID-19 I have had a lot of phone calls with founders of startup companies. In the last quarters it seems like almost every company I speak to has a remote team. It makes sense that some of these startups were actually founded in the COVID era. However, the trend goes beyond these firms.
If you think only about the startup market, it is just as strange for startups to raise equity capital for rent. It will also be weird for startups to raise capital today to buy servers and pay colocation fees. AWS and Azure are available for this purpose now. Remote work is available for offices. We don't need to pay for shares, but we do offer remote work.
Although we may be being too simplistic, renting early office space is some of the most expensive real property in the world. At least for successful startups. The smart will avoid tax.
More: There are very few jobs available in today's talent market. Ask anyone who is trying to find machine learning talent. Or senior dev roles. Or the marketing team leaders. You can go on and on. Startups are always on the lookout for talent.
For upstart tech companies, Big Tech corporations are even wealthier than ever. What can a young company do? Remote-friendly work is what the big companies are reluctant to offer. Startups will be able to attract talent from larger tech companies. They don't want to lose talent.
As time goes by, I believe that HR staff will have a lower retention rate which will allow for more flexibility in the workplace. Many startups today that operate remotely will grow and adapt to the business model, eventually becoming large companies with completely remote teams. The debate about remote work and returning to expensive office space is still ongoing, but it feels more like doomed cruiseliner deckchair-shuffling rather than real debate.
Do you plan to return to car-commuting, or to public transit? I doubt it. I don't think so.
Boston: More
The Exchange spends time researching the different startup hubs around the globe, with a particular focus on the U.S. markets worth more attention. For example, we have looked at Boston and Chicago.
A few more comments were received after the Boston piece went live. Let's take a look at their key points.
Rudina Seseri, Glasswing Ventures, gave us a glimpse at the future of Boston. She said that there are many companies coming to market and raising more rounds. They also feel operationally strong. The funding appetite will not change unless there's a significant market correction that goes beyond Boston.
If market conditions continue, Boston startup venture activity could heat up. The Exchange was informed by Seseri via email that pre-seed companies and seed-stage businesses are on the rise. We have seen a 2x increase in the number of highly qualified applicants for funding year over year.
She believes that the number of startups Boston is creating is a testimony to the entrepreneurial spirit in early technology and the market opportunities that COVID-19 accelerated.
Ari Glantz, of the New England Venture Capital Association, stated that despite a slowdown for H1 2020, both funders and founders have witnessed a historic flow capital. This was due to new opportunities and needs that were created by pandemic-era shifts. Companies and their backers are continuing to adapt so the prospects remain bright.
This last quote was included because it is applicable to almost everywhere. Startups have never had it this good before!
Next week: More
Alex
