As we come to the end of what has been a very challenging year for everyone, we look forward to the positivity and continued recovery into 2021…..(please!!!)
Keeping up to date with all the developments in the fast moving tech world is a challenge so we bring you the highlights:
HIRE HIRE HIRE.
Amazon sweeping up talent globally -
The phenomenal rise of tech driven businesses show no signs of slowing as Amazon added 427,300 employees in 10 months, bringing its global workforce to more than 1.2 million!
The pandemic has created a huge shift in the demand for people resources and it’s not all tech talent that companies are needing. Amazon’s marketplace has reached dominance through technology but not without the delivery infrastructure it’s created along the way, they need drivers, as do the food delivery companies that are also on the rise.
Fintech showing no signs of slowing.
Also on a hiring spree is Transferwise as they look to add another 750 people to their team globally. The payment space is evolving and Transferwise are leading the charge, with an office in Melbourne expect to see them attracting talent from Aussie tech companies similar to Klarna who have been busy scaling up during the pandemic.
WHAT’S GOING ON IN THE LOCAL MARKET
Skilled migration key to economic recovery according to RBA governor Philip Lowe. No surprises there, but what has the impact been and what will the impact be moving forward? Since March last year there’s been little to no migration of software engineers, product managers, designers that usually flock to our shores helping our tech ecosystem grow.
Our prediction is a further short fall in talent from what was already playing out pre-pandemic. As companies recover and more investment comes in from the likes of Airtree, Blackbird, SquarePeg etc., where do these businesses find talent? The battle for talent will increase and with any supply and demand equation, when demand is high and supply is low, the cost (salaries) will increase.
Recent raises by Sydney tech companies
Canva $6B valuation following a $60m raise during Covid. There has been a lot of tech listings on the ASX in the past couple of months including Plenti, Nuix, Ansarada, HiPages, so the question is how long before Canva finally lists? Equally as big of a question is where, ASX or NASDAQ?
Marketplacer raises ahead of an IPO so they can take on the US market - Aussie startup Marketplacer has bagged $20 million in funding, for its leading online marketplace platform helping retailors stay abreast of the e-commerce revolution.
Shippit announces $30m raise in series B led by Tiger Global to continue the growth of its middle-ware for the logistics sector.
Healthmatch announces $18m raise led by venture capital fund Square Peg for its digital platform to connect patients with upcoming clinical trials.
IPOs KEEP FLYING IN THE US
Airbnb IPO more than doubles on opening!
You would think a pandemic resulting in a huge drop in domestic and international travel would harm the valuation of Airbnb but no! Investors couldn’t get enough of tech companies listing on the public market with a valuation close to US$100B on day 1.
Meanwhile food delivery company Doordash increased 85% on their opening day. Are we reaching the internet bubble of the late 90s all over again as young investors have been touted as the driver of these insane valuations?
We love tech and so when one of the OGs Steve Wozniak starts a new venture into Blockchain you have to sit up and take notice.
Possibly the next Woz is Luminar CEO Austin Russell who became a Billionaire at 25 with his self driving technology company. Last year it was Sydney founded lidar company Baraja securing $45m of investment but it’s all gone quiet as they operate in stealth mode out in Linfield. Will we see developments from the Baraja team in 2021?
Salesforce buys Slack in a deal valuing them at around US$25B as they shape the future of enterprise software and transform the way everyone works.
After Atlassian pulled out of the battle with Slack in 2018 sunsetting Hipchat it looks like it was a very wise move by the Atlassian founders. They took shares in Slack in exchange for IP of Hipchat and Stride, that stock will have increased significantly in those 2.5 years especially with this buyout by Salesforce.
So what do you do when you are the founder of Australia’s most successful tech company? Yes, you buy into an NBA team - High school basketballer Mike Cannon Brookes has bought a minority stake in the Utah Jazz.
Well, I don't think of any of us will forget 2020 and the chaos that ensued but like every successul start up there is always turbulence along the way. Our prediction is that the Sydney tech scene is going to thrive in 2021 and we can't wait to see who the big winners are. Enjoy your Christmas holidays and see you in the New Year!