Leverage capital efficiency through inflation & recession
The internet is virtually bursting at the seams with articles about the current economic situation, the economic climate, the inflation and the gloomy prospects of the World economy. It’s true that the US and major European economies are already taking a downturn. They’re sort of spiraling down, while there’s significant risk that we shall enter into recession in 2023; or, perhaps, earlier. But, we’re confident that the key to surviving this is to leverage capital efficiency.
Some good, in a bad situation
While this is clearly bad news and, very unfortunately, lots of people will suffer, it’s also natural and anticipated. If we look back to recent history, in 2000 and in 2008, the US – and, largely, the world – economy went through several crises and recessions; however, at the end, after three to five years, things seemed like they went back to normal. But, did we really leverage capital efficiency?
Please, don’t get me wrong, I’m not trying to say that it doesn’t matter; quite the contrary. As a citizen I’m extremely frustrated with our governments’ policies that are largely responsible for the unnecessary suffering of so many fellow human beings. On a strictly business level, however, the tech sector will suffer the least and, like it always is the case, there will be many opportunities.
What we know, so far
The 2000 crisis, known as the ‘dot-com bubble‘, actually gave birth to the internet/web economy. Then, the 2008 crisis, much as it was triggered by the subprime loans, indeed gave birth to the SaaS and mobile app economy. This crisis, in a strictly personal and subjective opinion, will give birth to a new digital economy; where the so called ‘deep tech‘ domains, like machine learning, blockchain, AR/VR and others, will leave the ‘exotic’ sphere and will become mainstream technologies, starting to create some real economic value.
We can thrive, eventually
At the end of the day, I’m very optimistic that the coming crisis will not be a catastrophic one, but something similar to what happened in 2000 and/or 2008 (at least in terms of the order of magnitude). This is not to say that things will not get tougher; they certainly will.
Our DNA, however, is that of an entrepreneurial ecosystem; born and grown into one of the world’s worst crises. We know how to deal with such situations; and we’re very confident that not only we shall survive, but that we shall actually be able to thrive in this environment. So long as we leverage capital efficiency, of course!
Leverage capital efficiency, to survive!
Yes, our entrepreneurship and investment thesis to leverage capital efficiency has become more current than ever! If you want to find out more on our philosophy, please take some time and read the following posts:
