The Covid-19 outbreak has led to a raft of changes across industries, from home working and virtual business meetings through to social distancing and reorganisation. Beyond the day-to-day of how we’re working, we’ve also seen dramatic changes within some industries as to what we’re working on.
One of the most interesting impacts of Covid-19 has been the response of businesses who are trying to not only survive, but also help in the face of a massive global pandemic. Restaurants have moved to online delivery models, fashion labels are manufacturing face masks and life science organisations worldwide are devoting their efforts entirely to finding a vaccine. This is easier for some than others – changing business models and production plans suit organisations that are agile and free from the restrictions that many established large-scale businesses have in place.
With that in mind, we’re taking a look at how startups have pivoted in response to Covid-19.
What does ‘pivot’ mean?
Anyone who’s worked in technology – and particularly the startup world – will be familiar with the pivot. It’s the term given to a change in approach to test a new business model or product, usually after receiving feedback that the original approach is not effective. It’s common in the startup community where entrepreneurs typically follow a lean methodology where everything is questioned – even the purpose of the organisation. Famous organisations that have pivoted include Nintendo, whose previous products have included instant rice and vacuum cleaners, and Twitter, which was once a service called Odeo that allowed people to find and listen to podcasts.
Which startups have pivoted as a response to Covid-19?
The 2010s saw a huge amount of hype generated over 3D printing, yet the technology has so far seemed somewhat underutilised. Now, however, Covid-19 is presenting new demand for additive manufacturing, thanks largely to the stranglehold China has had on manufacturing personal protective equipment and other products that have been in short supply during the pandemic. When Chinese manufacturing came to a halt during lockdown, startups and other businesses stepped up to use 3D printing to fill the gap, with designs for face shields and medical equipment shared on open source platforms to allow anyone to create these much-needed products. The Middle East and North African market have seen 3D printing startups such as Eon Dental pivot to contribute to the Covid-19 battle, reconfiguring machines and temporarily changing their entire business models. Meanwhile, UAE commodities startup Immensa produces 10,000-12,000 face shields a day to export to Europe, the US and Middle East.
Closer to home, Swiss-based fertility tracking organisation Ava Women is researching whether its fertility tracking device can be used to detect early signs of Covid-19. Another life sciences startup, Warsaw Genomics, has moved away from its genetic testing to now for distribution within Poland’s hospitals, while delivery network Gophr is now delivering pharma, bio-sample and test kids for health services companies.
The fintech market is not exempt from virus-driven pivots. Examples include US neobank Moven selling its direct consumer offering to focus entirely on developing financial technology for other banks, and British credit rating startup Credit Kudos launching a tool that allows freelancers to verify their earnings to benefit from the British government’s financial support.
What does this mean for me?
These pivots demonstrated the rapidly changing business landscape we are finding ourselves in, and the need for businesses and workers alike to take a flexible, agile approach to the marketplace. While experience in healthcare and life sciences is naturally in demand in the current climate, so too are digital and technology skills to help startups and other businesses pivot and digitalise their offering.
If you’re in the market for a new role, we’d love to help. We have deep experience in our specialist markets and are paying close attention to the current market conditions. Contact us to start a conversation about your next steps.