It’s only June, but we’ve had a full year’s worth of important lessons already.
We’ve learned that the most unprecedented global events can turn the entire world on its head. Clearly, we can never really know what’s about to happen next.
We’ve also learned the most volatile times produce tremendous innovation, growth, and progress. That’s kept me pretty hopeful for the future.
There are still six months left in the year, and I know there will be a few more lessons to learn before we hit 2021. And it’s not all negative… in fact, I think we’re about to see major continued growth in some gigantic industries through December and beyond.
Let’s dive in:
- Accelerated progress in the ecommerce industry
When we entered 2020, there were plenty of sectors on the rise, and I don’t expect them to slow down anytime soon.
Take ecommerce. Digital Commerce 360 reports that in the fourth quarter of 2019, ecommerce sales in the United States reached approximately $187.25 billion. This was a 16.4% increase from the same period in 2018.
This year, huge corporations like UPS are reporting demand increases of around 9% in ecommerce deliveries. That signals some ecommerce companies – both big and small – are growing faster than ever before.
By the end of Q1 2020, U.S. consumers spent approximately $146 billion online… marking a 14.5% increase from 2019. And I bet the second quarter will show even more significant growth.
But, it’s not just about the near-term. Accelerated momentum in ecommerce – and so many other markets – will completely shift the behavior of consumers, workplaces, companies, and more into the foreseeable future, signaling an increasingly exciting time for investors down the line.
- A focus on communication and connectivity
This year, millions of employees and students moved their offices and studies home. And for most of us, it’s unclear when we’ll be able to reenter our traditional office workspaces.
We’ve also seen gigantic tech corporations like Google, Microsoft, and Facebook shift their workplace policies to allow their employees to work from home through the end of the year.
And in an unprecedented move, Twitter’s CEO Jack Dorsey announced last month that most of his employees will be allowed to work from home “forever.”
I’ve said before that remote work is here to stay, and I’m sticking by that.
It’s going to define how many of us perform our day-to-day work tasks, and we have to get used to it. But it can also be isolating, and many companies are continuing to develop cloud-based technology necessary to foster communication and connectivity in a distributed society.
We’ve seen it with apps like Zoom and Slack for work. But we’ve also seen it outside the workplace with cloud-based and online gaming apps for friends… think apps like JackBox Games, Houseparty, or QuizUp.
I fully expect the cloud applications industry to expand tremendously into the future. According to Grandview Research, the market was valued at $266 billion in 2019, and it’s expected to keep growing at a rate of around 15% through 2027.
- An increasingly personal investor and founder relationship
I believe the companies who continue to grow through the end of 2020 and beyond will be the ones who are prepared for whatever crisis may come next.
And they’ll need all the help they can get… which is where you come in.
Capital is extremely important to a startup’s growth and success, but as an angel investor, you have the ability to bring more than just cash to the cap table.
Every investor has a set of unique skills… whether that’s a solid business acumen, some well-established connections, or just some really great advice. All of it is useful to a company that’s just starting out, and you have a real opportunity to be there right from the beginning.
That’s why I’m thrilled that we’ve built a community that’s so important for investors and startups alike.
Because together, we’re honing the skills necessary to prop up the most lifechanging ideas of future, and I’m so excited to see where we go from here.
Until next time,