When we analyze the COVID-19 pandemic, it turns out that Coronavirus has impacted every single one of us. Like it or not, you have been impacted by the pandemic one way or the other. And it is regardless of your gender, ethnicity, background, or profession. “It was no different than the rest of the world in Silicon Valley,” says the CEO of Tiger Global, an investment startup in Silicon Valley. Nevertheless, the pandemic has some positive aspects as well, according to the CEO of the startup. “People became more empathetic, compassionate, and have looked after one another. Companies knew the importance of their employees and likewise, they also realized how incredible it is to have a job. To be a source of living for their families.”
Over the last few years, Silicon Valley has seen all the developments it could. Startups flourished, the yearly revenue of giant companies soared, and consumers found affordable goods in the market. The phrase “RIP to Good Times” that was ubiquitous in Silicon Valley no longer remained relatable. Business boomed, the stock market thrived, and Silicon Valley became a reliable place to be in.
Whether you go back to the Obama administration or analyze the Trump era, Silicon Valley seemingly prospered and as a result, massive investments were made in startups and multifarious business modules. Crypto and NFTs became the talk of the town. In fact, it will be fair to credit the financial literacy of the Silicon Valley residents that enabled them to stand out even during the pandemic. It is financial literacy alone that proved the “RIP to Good Times” phrase wrong. In turn, it changed it to “Welcome Good Times,” whether it is a pandemic or a financial recession.
Despite Thriving Both in the Market and in Households, Silicon Valley is Preparing for the Worst
Despite all the developments and thrivings of Silicon Valley, it is by no means perfect. Rather, they are anticipating a financial recession following the COVID-19 pandemic. “We are foreseeing a potential financial recession, just like the ‘Dot.com Crash’ in the near future,” said a statement from a Silicon Valley-based crypto firm. The crypto firm – which has a $2 million yearly revenue – cautions businesses to be “prepared for the worst.” It alarms all businesses to make themselves so independent that they can survive for two years if they could not make a revenue.
It is pertinent to note here that if your startup or business does not have enough funds, it may not survive a recession. If a global economic crisis hits, your business is very likely to go bankrupt.
The COVID-19 pandemic is a prime example of the fact that businesses that did not have enough funds apart from their revenue, can not survive. On the other hand, businesses that were “prepared for the worst” made it through the pandemic.