The pandemic which earlier threatened the economy with a recession also forced major corporations to make severe budget cuts and some to  file for bankruptcy. But there is one industry on which the pandemic has had a positive effect: the start-up industry.

According to Bernhard Schroeder, a senior contributor at Forbes, start-ups launched during an economic downturn to perform better than those launched in a more economically stable time. That’s because innovators hunt for solutions when they are surrounded by problems. And those solutions become business plans. This explains the rise of medical start-ups like Tomorrow Health, a home health care service focused on providing technology-enabled operations combined with personalised services.

Jonathan Javier, the Founder and CEO of Wonsulting, a professional coaching start-up focused on helping people with non-traditional backgrounds get into their dream career, explains, “our development has accelerated due to the pivots we’ve made in a virtual world.” Wonsulting has had to shift its focus on helping job-seekers apply strategies on LinkedIn during a time when physical interactions with recruiters was not possible.

“Why I believe it’s [the pandemic] accelerated the growth of start-ups is because of the reach some are able to achieve virtually compared to in-person. For Wonsulting, we’ve adapted by hosting 130+ virtual workshops and events in under 2 years, mostly all coming during the pandemic where attendees are able to watch from the comfort of their own home.” Javier stated his insight on why he believes start-ups like his have benefitted from the pandemic.

Likewise, Wonsulting began hosting a speaker series online to continue operations while socially distancing, successively their sessions have attracted 20,000+ attendees on average. A regular convention hall can hold only half as many attendees, making such a large turnout impossible otherwise.

Considering the ease technology has created for communication, start-up founders have also found it easier and cheaper to contact advisors and partners. Not only has the universal acceptance of Zoom calls as a professional medium of communication allowed people to attend meetings with less hassle than an otherwise traditional in person meeting, but it has also enabled them to create connections internationally — a previously underutilized opportunity

By being able to acknowledge that your co-founders and partners share mutual struggles, a greater collaborative atmosphere is developed. The creation of such an environment allows innovation to rise and start-up operations to run as efficiently as possible. As Javier stated, “One of the most important aspects is maintaining a community of not only members but friends, and by doing so, we’re able to turn underdogs into winners.” 

The pandemic has been the gateway to a surge in demand for the technology market. As most institutions like offices, schools, and even hospitals began shifting online, a greater need for tech support and software assistance has arisen. Companies like Intalayer, a platform that helps customer support and product teams in software companies handle bug management more efficiently, have taken this opportunity to launch and develop themselves in an arena where their skills are required the most.

Intalayer prides its team for being able to collaborate regardless of the distance between the 3 partners, Co-founder Michael Wendland told Startup Daily. “We are based in Sydney (NSW), Armidale (NSW) and Hamilton (NZ) but it doesn’t feel that way. The obstacles and distance have strengthened our attention and commitment to understanding each other, our lives and how we work.”

Having to remotely create their team allowed the three to witness greater understanding “The obstacles and distance have strengthened our attention and commitment to understanding each other, our lives and how we work.” , Wendland told Startup Daily.

Though the pandemic threatened the existence of enterprises across the world, the opportunities it yielded provided more good than harm to innovators hunting for a chance to launch their ideas.

“If a start-up is able to fill a need in today’s society and provide those necessary tools to be successful, then the company will in turn thrive,” Javier wrote.