8 Silver Linings In This Period Of Gloom
This time each year, we’d usually share our research on hiring trends in the tech industry. But after what feels like bad news on news, with some describing recent job cuts as a “blood bath”, we decided to drop the stats. Instead, we bring you uplifting insights from nine of the smartest venture capitalists, founders and human resource experts we work with that will turn your perspective around.
With the decline in the global market and venture capital deployment, layoffs and job rescindments in tech have been dominating headlines for months. With a fresh crop of casualties from Twitter and Meta, we won’t bother to inundate you with figures you may already be too familiar with.
Whether you have been directly affected or are feeling demoralised by these events, take heart. We speak to nine thought leaders who share silver linings and tips for both founders and talents.
Like these thought leaders, our optimism in the tech industry remains unabated. After all, the very nature of tech start-ups is to build a new world from the ashes of crisis, chaos, difficulty and statis.
And at ConnectOne, our entire team is committed to supporting the industry and our peers through these challenging times including our founder Elena Chow who has set aside an hour every day to lend a listening ear to those who have been affected. We hope this silver lining compilation will inspire and uplift you to ride out the storm so that together we can emerge stronger.
FOR FOUNDERS
#1 This downturn won’t last – get a head start while you can
“Explore an idea that you never had the chance to when the market was hot.”
- Albert Shyy, managing director of Eurazeo
Historically, bear markets don’t last forever. Some such as Albert Shyy, managing director of Eurazeo believe that using interest rate and inflation as an index, it may even be as short as six months. Others project that it might last a little longer.
Regardless, this temporary setback is a good time to regroup and get a head-start on game-changing new ideas. “Explore an idea that you never had the chance to when the market was hot. There is still lots of capital to be deployed and investors are looking for good ideas, good teams and folks with good experience, so it’s still a good time to be a founder,” said Shyy.
#2 Break status quo, establish a new order
Status quo is often the antithesis of growth. The bullish optimism of the past few years may have lulled many into condoning suboptimal or inefficient practices. If so, there is no better time to break status quo and develop a better system that will take your company to new heights in the years to come.
“While the recent events have caused much apprehension and fear in the markets, the focus for founders should be disciplined execution.”
- Looi Qin En, principal at Saison Capital
“While the recent events have caused much apprehension and fear in the markets, the focus for founders should be disciplined execution. Much of what has transpired is due to the lack of discipline. Moving forward, founders can expect their users, investors and governments to have higher standards in discipline,” said Looi Qin En, principal at Saison Capital.
CEO of Pine Venture Partners Hyuk-Tae Kwon cautions companies to “focus on cash flow and generating healthy profit so that they can extend the runway as far as possible.”
Daphne Ng, co-founder and CEO of Dedoco agrees, adding that start-ups should ensure a minimum 24-month runway till the end of 2024. “Establish the correct financial discipline and mindset that is driven from the top to all levels of the organisation,” she said.
On a positive note, Looi added that there is much to be optimistic about. “While 2022 has been a bear market, building has not stopped. In a recent report on developer activity, 36% of all smart contracts ever deployed and verified have been in 2022. While prices are down – more than 60% for Ethereum at the time of writing – smart contract deployments have surged 40% to all-time highs. This is an indication that Web3 adoption and development continues regardless of what has happened,” he said.
“focus on cash flow and generating healthy profit so that they can extend the runway as far as possible.”
- CEO of Pine Venture Partners Hyuk-Tae Kwon
#3 Rationalise, recalibrate, think long-term
“period of rationalisation is good for hirers and talent”
- Jeffrey Seah, partner at Quest Ventures
Some like Jeffrey Seah, partner at Quest Ventures believe that this “period of rationalisation is good for hirers and talent, as well as executing expansionary plans ”.
“There was no clear value exchange in the past four years between talent business development hirers – it was driven by raised funds and rushed hiring. This period of time – which will likely last for the next 18 months – will allow all parties to appreciate and understand one another for the longer term,” he said.
“During the past few years of bullish funding abundance, business ratios on measuring going concern took a back seat to vanity metrics. In these new times of funding scarcity, founders who have built their businesses on sound foundations should execute their expansion plans and acquire their competitors who are unable to support growth post without lifeline funding.
Investors are sitting on immense dry powder - they will be making a beeline for the survivors of this Darwinian natural selection period for the global tech ecosystem.”
“Investors are sitting on immense dry powder - they will be making a beeline for the survivors of this Darwinian natural selection period for the global tech ecosystem.”
- Jeffrey Seah, partner at Quest Ventures
#4 Seize market share and grab talent
“This is an opportune time to get great talents and double-down on seizing market share via a position of strength,”
- Daphne Ng, co-founder and CEO of Dedoco
Bear markets offer different opportunities for those who know how to seize them. “This is an opportune time to get great talents and double-down on seizing market share via a position of strength,” said Daphne.
Indeed, Hyuk-Tae Kwon advised his portfolio companies that have recently secured a large funding to look out for professionals laid off from large organisations and hire them at a reasonable price range to position the company for strong growth when the market recovers.
FOR TALENT
#5 Step up within your team
It is natural for talent who have narrowly escaped recent retrenchments and rescindments to feel on edge or demoralised. But Anthony Chow, founder of Igloo Company suggested that this is a rare opportunity for personal growth.
“At igloo company, we had several people step up their scope and responsibilities and demonstrate resilience and agility in the face of economic uncertainties. These traits are highly valued now and post-recession,”
- Anthony Chow, founder of Igloo Company
With the recession, many companies are focusing their resources and team on what went well and what is creating real value to customers, and trimming what might not be working, he noted. This gives talents the opportunity to identify and double down on growth sectors that will boost their career in time to come, he added.
“This is also a great time for talent to explore multiple roles and take on different or bigger responsibilities internally or externally as many companies strive to exercise prudence to pull through the challenging times. At igloo company, we had several people step up their scope and responsibilities and demonstrate resilience and agility in the face of economic uncertainties. These traits are highly valued now and post-recession,” he added.
#6 Self-reflect and redirect
“Instead of jumping into the next career search, ask yourself critical reflective questions: What brings out the best in me? What brings out the worst? What do I want to learn next? What is the right time to transition back?”
- Susan Chen, Director, Head of People – Asia at Riot Games
If you’ve been affected by the job cuts, it is only normal to feel emotional. “Take the time to feel your emotions and name them. Fill your emotional cup that may appear to be empty first before making any critical decisions,” advised Susan Chen, Director, Head of People – Asia at Riot Games.
“Use the time of transition to reflect and reconnect with your world that now takes a different lens. Instead of jumping into the next career search, ask yourself critical reflective questions: What brings out the best in me? What brings out the worst? What do I want to learn next? What is the right time to transition back?” she added. This will help you turn this set-back into a launching pad for a strong career trajectory.
#7 Be willing to pivot
“For example, a good recruiter could work in other areas of people operations including sales, account management and employee engagement,”
- Cheryl Liew, Head of T alent at Monk’s Hill Ventures
“Recognize this has happened many times before. It's cyclical. In a year’s time, the same companies might start re-hiring for the same roles,” said Cheryl Liew, Head of T alent at Monk’s Hill Ventures.
In the meantime, talent who have been affected should not only be more flexible about their remuneration expectations, but also be open-minded to a pivot to build new skills to first get through these rough times. “For example, a good recruiter could work in other areas of people operations including sales, account management and employee engagement,” she suggested.
#8 Look inwards for personal growth
“I've been using this opportunity to connect with friends, meet new people, and explore hobbies that I didn't have time to indulge in previously such as badminton and learning how to be a barber,”
- Amanda Ang, ex-head of Public Policy, East Asia at Snap Inc
After the heady years of bullish optimism, this is a good time to press pause and reflect on what drew you to the tech industry in the first place and question if this still holds true for you.
“In many ways, tech has changed our lives for the better and I’m attracted to the creativity and innovations emerging from the sector. I want to actively participate in the industry to ensure that the products of such innovation are meaningful for our society,” said Amanda Ang, ex-head of Public Policy, East Asia at Snap Inc who was unfortunately affected by the job cuts.
The silver lining can also come in other ways. “I've been using this opportunity to connect with friends, meet new people, and explore hobbies that I didn't have time to indulge in previously such as badminton and learning how to be a barber,” she shared.
“While there are days when I feel down, these activities and interactions give my days some structure, which reduces my anxiety. I've also been touched by the kindness of friends, colleagues and the wider industry who have provided advice, connected me with their network, or provided a listening ear,” she added.
Though intangible and unquantifiable, these daily choices will help you find a clearer sense of direction, build a stronger network and position yourself for greater opportunities in time to come.