Home Travel Trending: The coronavirus aftermath is not just Zoom video calls

Trending: The coronavirus aftermath is not just Zoom video calls


Hello again, and welcome to this week’s edition of Trending, the newsletter where we highlight BI Prime’s biggest tech stories. I’m Alexei Oreskovic, Business Insider’s West Coast bureau chief and global tech editor.

If you’re a regular reader or a first-timer, you can get Trending in your inbox every week by signing up here.

This week: The turbulence of the COVID crisis and what comes after

There have been canceled conferences and earnings warnings. But for Silicon Valley, the reality of the coronavirus wasn’t truly accepted until last week when Sequoia Capital published its now-famous Black Swan memo. 

Like the VC firm’s dire“RIP Good Times” presentation to startups 12 years ago — which Sequoia delivered after the financial crisis had already toppled Bear Stearns and Lehman Brothers — Sequoia’s words are less a leading indicator of trouble than a confirmation to techies that they won’t be immune. 

Woman in face mask with phone

And the last few days have provided plenty of sobering examples of the virus’ toll on tech. South Park Cafe, a favorite of the venture capital crowd in San Francisco that’s owned by fintech startup Brex, is now indefinitely closed after a staffer tested positive for COVID-19. Salesforce mentioned the coronavirus 10 times in its 10-K annual report released on Thursday. And Y Combinator said its iconic Demo Day startup pitch fest will be pre-recorded.

If you look beyond the day-to-day impact on the stock market and the conference circuit, you might glimpse some of the deeper, potentially more significant consequences of this crisis. 

Take the petro-feud between Russia and Saudi Arabia. As the Saudi Kingdom girds for the economic fallout of a price war, will the appetite for risky tech investments evaporate, cutting off a source of capital that startups like Uber and SoftBank Vision Fund’s collection of companies have taken for granted?

Similarly, could the Chinese government’s draconian-but-perhaps-effective tactics combating the virus alter the contours of the privacy battles that have pitted companies like Apple against law enforcement authorities in the US?

Or could coronavirus change the debate around universal healthcare, and in turn, the economics of gig economy businesses?

It’s impossible to predict, of course. 

But the Silicon Valley that emerges on the other side of this outbreak may look very different from today’s Silicon Valley — and not just because some tech startups have layoffs or go out of business, or because more people are using Zoom to make video calls.

Automation, computer vision, and AI are getting more powerful every day. The barriers to adoption for some iterations of the tech are as much about societal norms as they are about technical capability. In a post-pandemic-world, for better or for worse, that may no longer be the case. 

Read some of BI’s coverage here:

The cafe owned by $2.6 billion startup Brex has closed ‘until further notice’ after a worker tested positive for COVID-19

Sequoia’s coronavirus memo is eerily similar to another warning the VC firm gave to startup founders in 2008. Here’s the full ‘R.I.P. Good Times’ deck.

Born in a downturn

Taking a longterm view is easy from the comfort of an armchair, but for startups living through the uncertainty and volatility right now, these are scary days. 

Benjamin Pimentel’s story about cloud software company Nutanix is a good reminder that an economic downturn is not necessarily the kiss of death for a fledgling business.

Nutanix CEO Dheeraj Pandey

Nutanix CEO Dheeraj Pandey


Nutanix launched in 2009 in the midst of the Great Recession. What’s more, the first version of the company name, Nutanic, sounded a little too much like Titanic. The company was able to fix the inauspicious name with a simple word swap. Surviving the recession was trickier. But as CEO Dheeraj Pandey recounted to Ben, a “stoic endurance” and confidence in a smart idea centered around the shift to cloud computing saw the startup through the choppy business waters and to an eventual public listing. 

As the spread of the coronavirus spooks Wall Street — including Nutanix’s investors who sold shares off after a downbeat financial outlook — a little stoic endurance can do wonders.

Read Ben’s full story here:

$3.4 billion cloud company Nutanix was founded in the midst of the Great Recession. Here’s how its CEO plans to steer it through another crisis as coronavirus takes its toll on its business.

Salesforce’s revolving door and its rising stars

Neeracha Taychakhoonavudh Salesforce

Salesforce exec Neeracha Taychakhoonavudh


Salesforce has experienced some turnover in its upper ranks of late. Keith Block, the company’s co-CEO, announced his surprise departure in February. And as Paayal Zaveri was first to report on Friday, Gregg Schott, an EVP who joined Salesforce with the $6.5 billion acquisition of MuleSoft two years ago, is headed for the exits.

So what does the roster at Team Salesforce look like now?

Paayal’s look at the cloud giant’s rising stars is an invaluable peek at who’s who in Marc Benioff’s $143 billion company. Some of these execs are Salesforce veterans, others are more recent additions. As the company hopes to double its revenue in the next few years, these are the people who will make or break that plan.

Read Paayal’s full story here:

Meet the 21 rising stars at Salesforce who are playing key roles in helping CEO Marc Benioff grow the cloud computing powerhouse

Here are some of the latest tech highlights:

Amazon just added 3 new execs to CEO Jeff Bezos’s team — Meet the 12 people directly reporting to him

The FBI arrested the alleged hacker behind the ‘Amazon.com of cybercrime,’ which it says sold $17 million worth of stolen accounts for Gmail and other sites

There are only 3 kinds of startups, according to this VC. Here’s why getting them confused leads to disasters like WeWork, Casper and other famous IPO fails.

Silicon Valley’s CEO coach, who counsels both founders and VCs, warns that joining a company’s board is the ‘death of every great investor’

The woman who has raised billions for Peter Thiel’s investment funds over the last 15 years reveals her strategy for getting outside investors to write checks into Founders Fund’s biggest fund yet

And more good stories from across the BI newsroom:

A leaked presentation reveals the document US hospitals are using to prepare for a major coronavirus outbreak. It estimates 96 million US coronavirus cases and 480,000 deaths.

‘Why the hell do you need $100 million?’: The CEO of startup Behavox says SoftBank handed him way more funding than he was looking for and told him he’ll never have to worry about money

JPMorgan insiders told us exactly what happened during the first 48 hours after CEO Jamie Dimon rushed to the hospital

Jim Rogers, the famed investor who earned a 4,200% return with George Soros, told us the best 2 assets to buy for profits after a ‘total collapse’ in markets

Thanks for reading, and remember, if you like this newsletter, tell your friends and colleagues they can sign up here to receive it.

— Alexei

Source link


Please enter your comment!
Please enter your name here