In recent years, the political and socio-economic environment around us has been changing rapidly. Pandemic, the war in Ukraine, inflation, you name it. The fact is, the tech startup market is facing an economic downturn, and we're witnessing its early beginnings.
Layoffs are accelerating, and that’s the first sign of even darker times ahead (you may check out this graph for details). For instance, Doug Ludlow, the fintech startup Mainstreet's CEO that recently laid off 30% of the company’s staff, tweeted that “we took this action because we believe there is a very strong chance today’s incredibly rough market is only going to get worse.”
According to Crunchbase’s data analysis, in April 2022, venture funding amounted to $47 billion globally. This figure represents the lowest number of startup investments over the past year. That’s a huge contrast to the optimistic picture of 2021, especially considering that venture and growth equity investments into startups doubled last year, reaching a whopping $643 billion.
However, such growth raised some legit questions about overvaluations and a possible bubble market. Can we attribute it to a severe case of funding fever? One way or another, many companies raised funds at remarkably higher valuations than expected, and some decisions were taken in a hurry.
Anyway, as usual, these shaky times don’t affect just anybody, at least yet. For instance, industries such as blockchain, marketing tech, and gaming still don’t cease to attract venture investor interest in 2022.
So what about a forecast? Is the downturn a death blow for the entrepreneurial scene? David Sacks from Craft Ventures predicts that this downturn (now compared to the dot-com crisis rather than Global Financial Crisis) could last up to two years with direct consequences for startups. The stronger among them will survive: unicorns will manage to raise, while most early-stage startups will have hard times finding capital.
Venture capitalists will be more selective when investing, and a correction is needed in regard to the current inflated valuation of startups. David Sacks (PayPal co-founder and a partner at the investment company Craft Ventures) tweeted that “investor sentiment in Silicon Valley is the most negative since the dot-com crash 20 years ago”.
Anyway, that’s the position for the day. The bad news is that most startups have never experienced an economic downturn of this magnitude. As for job cuts, well, founders will get used to making unpopular decisions to keep the businesses running.
On the other hand, startups have the means to adapt to new circumstances, and founders should concentrate on product quality and higher performance rather than growth and hiring. Experts from nfx.com go as far as suggesting “avoid trying to fundraise until 2024”.
Here’s Eugene Korsak, startup expert at Akveo, on the matter: “Although anyone would love to have an effortless solution to the problem, the key is to think differently and act proactively. In order to survive, you have to reduce marketing and sales costs, optimize internal business processes and search for safer business niches that will be least affected by the crisis. There's no silver bullet, but you can still tackle most issues (if you have a plan) and stay ahead of the curve.
This new reality will significantly affect the products and solutions technology players are interested in. The custom model will move to the side - Discover->Activate->Buy.
In this scenario, cost optimization will be possible thanks to the greater use of low-code/no-code solutions that help non-techies meet their product development needs. As of 2022, such tools may be integrated way deeper into the internal company processes and, accordingly, solve more and more tasks”.
In 2021, Gartner claimed that 80% of programming tasks would be delivered without coding by 2024. In today’s circumstances, this figure may grow bigger. Downturn or not, this lack of available programmers may lead to changing the whole working paradigm as acquiring (and, most importantly, retaining) developers gets increasingly challenging.
With low-code/no-code tools, startups depend less on software development talent when implementing and developing their products. In this regard, the no-code approach may change the whole startup scene, as startups will embrace low-code platforms to stay afloat during the downturn. Certainly, developers won't quit each and every project anytime soon, so I guess hybrid teams will become commonplace.
Significant changes are ahead in the tech industry, and the climate is challenging. But let’s try to stay optimistic. Sure, bear markets look scary, but they don't last forever. After all, some of the bigger names like Uber or Airbnb reached their peak in the wake of the 2008 crisis.
Lead Generation Tool to Reduce Manual Work
Our client, Afore Capital, a venture capital firm focused on pre-seed investments, aimed to automate their lead generation processes but struggled with existing out-of-the-box solutions. To tackle this challenge, they sought assistance from our team of Akveo Retool experts.
The scope of work
The client needed a tailored solution to log and track inbound deals effectively. They required an application that could facilitate the addition, viewing, and editing of company and founder information, ensuring data integrity and preventing duplicates. Additionally, Afore Capital aimed to integrate external tools like PhantomBuster and LinkedIn to streamline data collection.
The result
By developing a custom Retool application, we streamlined the lead generation process, significantly reducing manual data entry. The application enabled employees to manage inbound deals efficiently while automated workflows for email parsing, notifications, and dynamic reporting enhanced operational efficiency. This allowed Afore Capital's team to focus more on building relationships with potential founders rather than on administrative tasks.
Learn more about the case
Retool CMS Application for EdTech Startup
Our client, CutTime, a leading fine arts education management platform, needed a scalable CMS application to improve vendor product management and user experience.
The scope of work
We developed a Retool application that allows vendors to easily upload and manage product listings, handle inventory, and set shipping options. The challenge was to integrate the app with the client’s system, enabling smooth authentication and product management for program directors.
The result
Our solution streamlined product management, reducing manual work for vendors, and significantly improving operational efficiency.
Building Reconciliation Tool for e-commerce company
Our client was in need of streamlining and simplifying its monthly accounting reconciliation process – preferably automatically. But with a lack of time and low budget for a custom build, development of a comprehensive software wasn’t in the picture. After going through the case and customer’s needs, we decided to implement Retool. And that was the right choice.
The scope of work
Our team developed a custom reconciliation tool designed specifically for the needs of high-volume transaction environments. It automated the processes and provided a comprehensive dashboard for monitoring discrepancies and anomalies in real-time.
The implementation of Retool significantly reduced manual effort, as well as fostered a more efficient and time-saving reconciliation process.
Creating Retool Mobile App for a Wine Seller
A leading spirits and wine seller in Europe required the development of an internal mobile app for private client managers and administrators. The project was supposed to be done in 1,5 months. Considering urgency and the scope of work, our developers decided to use Retool for swift and effective development.
The scope of work
Our developers built a mobile application tailored to the needs of the company's sales force: with a comprehensive overview of client interactions, facilitated order processing, and enabled access to sales history and performance metrics. It was user-friendly, with real-time updates, seamlessly integrated with existing customer databases.
The result? Increase in productivity of the sales team and improved decision-making process. But most importantly, positive feedback from the customers themselves.
Developing PoC with Low Code for a Tour Operator
To efficiently gather, centralize, and manage data is a challenge for any tour operator. Our client was not an exception. The company was seeking to get an internal software that will source information from third-party APIs and automate the travel itinerary creation process. Preferably, cost- and user-friendly tool.
The scope of work
Our experts ensured the client that all the requirements could be covered by Retool. And just in 40 hours a new software was launched. The tool had a flexible and easy-to-use interface with user authentication and an access management system panel – all the company needed. At the end, Retool was considered the main tool to replace the existing system.
Testing New Generation of Lead Management Tool with Retool
Our client, a venture fund, had challenges with managing lead generation and client acquisition. As the company grew, it aimed to attract more clients and scale faster, as well as automate the processes to save time, improve efficiency and minimize human error. The idea was to craft an internal lead generation tool that will cover all the needs. We’ve agreed that Retool will be a perfect tool for this.
The scope of work
The project initially began as a proof of concept, but soon enough, with each new feature delivered, the company experienced increased engagement and value.
We developed a web tool that integrates seamlessly with Phantombuster for data extraction and LinkedIn for social outreach. Now, the company has a platform that elevates the efficiency of their lead generation activities and provides deep insights into potential client bases.
Building an Advanced Admin Portal for Streamlined Operations
Confronted with the need for more sophisticated internal tools, an owner of IP Licensing marketplace turned to Retool to utilize its administrative functions. The primary goal was to construct an advanced admin portal that could support complex, multi-layered processes efficiently.
The scope of work
Our client needed help with updating filters and tables for its internal platform. In just 30 hours we've been able to update and create about 6 pages. Following features were introduced: add complex filtering and search, delete records, styling application with custom CSS.
Together, we have increased performance on most heavy pages and fixed circular dependency issues.
Creating MVP Dashboard for Google Cloud Users
Facing the challenge of unoptimized cloud resource management, a technology firm working with Google Cloud users was looking for a solution to make its operations more efficient. The main idea of the project was to create an MVP for e-commerce shops to test some client hypotheses. Traditional cloud management tools fell short.
The scope of work
Determined to break through limitations, our team of developers turned Retool. We decided to craft an MVP Dashboard specifically for Google Cloud users. This wasn't just about bringing data into view; but about reshaping how teams interact with their cloud environment.
We designed a dashboard that turned complex cloud data into a clear, strategic asset thanks to comprehensive analytics, tailored metrics, and an intuitive interface, that Retool provides. As the results, an increase in operational efficiency, significant improvement in cost management and resource optimization.
Elevating CRM with Custom HubSpot Sales Dashboard
Our other client, a SaaS startup, that offers collaborative tools for design and engineering teams, was on a quest to supercharge their sales efforts. Traditional CRM systems were limited and not customizable enough. The company sought a solution that could tailor HubSpot to their workflow and analytics needs.
The scope of work
Charged with the task of going beyond standard CRM functions, our team turned to Retool. We wanted to redefine how sales teams interact with their CRM.
By integrating advanced analytics, custom metrics, and a user-friendly interface, our developers provided a solution that transformed data into a strategic asset.
In 40 hours, three informative dashboards were developed, containing the most sensitive data related to sales activities. These dashboards enable our customer to analyze sales and lead generation performance from a different perspective and establish the appropriate KPIs.
Building a PDF Editor with Low-Code
Our client, a leading digital credential IT startup, needed a lot of internal processes to be optimized. But the experience with low-code tools wasn’t sufficient. That’s why the company decided to hire professionals. And our team of developers joined the project.
The scope of work
The client has a program that designs and prints custom badges for customers. The badges need to be “mail-merged” with a person’s info and turned into a PDF to print. But what is the best way to do it?
Our developers decided to use Retool as a core tool. Using custom components and JavaScript, we developed a program that reduced employees' time for designing, putting the data, verifying, and printing PDF badges in one application.
As a result, the new approach significantly reduces the time required by the internal team to organize all the necessary staff for the conference, including badge creation.
