Tech uncertainty of the year 2022
Are we going to witness another tech bubble ?
Today is January 24th & we are now in the year 2022 . Tech industry is livid, as there’s uncertainty in the markets.
Everybody around the corner is talking about the PayTM that has lost its ~56 % of its value since listed on the Indian stock markets on November 18th, in just about 2 months. Zomato witnessed a bloodbath of sorts today, as it lost ~20% of its value in a single day. Nykaa another hot tech potato was down by ~13% in a single day.
Is this a precursor to year ahead ? More importantly why are technology companies loosing steam ? Is it because markets are overvalued? Are tech companies are facing the heat because they are not profitable yet & are facing the harsh realities of the markets ? Or is it because investors are not
Are there macro-economic factors such as fed increasing the interest rates ? FPIs cashing out on profits or is it really because there’s uncertainty in the markets & no-one really knows which way the markets are headed ?
In my estimation all these factors are true to a certain degree .
What’s important though is to navigate this uncertainty with confidence & that can only happen if sufficient light shines on the underlying factors that make a technology company .
Sifting through information & making sense of what is important is a tedious job though.
In the days to come, we will explore business model of each of these companies, understand how they make money today & who invested in them to begin with.
As things become complicated & to a certain extent cumbersome, we will embark on a exploratory journey to understand the bare-basics of these new age companies. We will make an attempt to understand what goes into making a good technology founder, is it that there’s only a one winner in dog-eats-dog competition ? Is there a win-win or is it have to be winners takes all ? Is empathy a value to be cherished ? Is customer focus a charade ? Does Great Place to Work organization really exist ?
How do VCs value a company & how to find an angel investor ? Do you think you really have a great idea but lack money or is it the motivation & lack of application that is holding you back ?
Where does the next big idea come from ? Is a technology game changer or its another player who is in the puddle ?
To find answer to questions to such as these & more - continue to watch this space.
(Photo courtesy : unsplash/@annie_spratt )