Do you already see the sun rays that pierce through clouds after every storm?
They are always there, waiting for us 🌤️
And with that in mind, we reached out to a couple of founders to check on how they’re sailing through the rough corona seas. Last month we analyzed the overall endurance of business sectors, and today we will dive deeper to see how startup founders think, how their businesses adapted and what they can teach us.
More good news from ArzanVC’s Family will follow. Hold on tight to your boat’s helm!
Copy the way I cope
Crises are part of life. They force us to think, rethink and make things better. It’s a rule that crises always give rise to something good. Even John F. Kennedy said: “When written in Chinese, the word crisis is composed of two characters—one represents danger, and the other represents opportunity.” And that’s what we @ArzanVC really believe in.
But what do founders believe in? We asked them. We were in touch with founders from multiple sectors—Algodriven (automotive tech), Almentor (edutech), Teela (essential e-commerce), The Luxury Closet (non-essential e-commerce), Tons (groceries e-commerce) and ViaVii (travel e-commerce)—and these are their insights and words of advice:
Adapt. Act quickly. Innovate. Whenever possible, all teams opted for working remotely, as the rest of the world did. Some of the founders experienced unprecedented demand, while others had to find alternatives to delivering their offering. Algodriven had to fast track new features to enhance their products and offered extended payment terms. Similarly, Almentor had to customize new products to manage the very high demand for the e-learning services. Teela saw it as an opportunity to expand and grow the market share. Tons chose to control the number of orders and slowly grow the capacity while onboarding new stores. The Luxury Closet made sure to implement a healthy supply and demand and stress-test financials. ViaVii was the first to launch online authentic cultural and artistic experiences, which gave them a leverage over international competitors. “We translated going into self-quarantine to a fun, entertaining and educational experience,” said ViaVii.
What are the most important attributes of a startup right now? Speed. Some founders believe that this is a unique opportunity for startups as many governments and corporations realized that it’s startups who can help solve nation-wide problems. Or world-wide. Empathy and communication are also crucial. “We’ve tried to engage all our stakeholders, from employees, to customers and investors so that we can work through the situation together,” explained Algodriven. “Establishing clear communication will help businesses win people’s confidence,” added The Luxury Closet. Teela thinks that having a vision is the key: how do you envision your business after the crisis? If implementation is slowing you down, an alternative route, according to ViaVii, can be a beta.
And the founder’s personal advice? We all have to keep our heads above the water level and stay positive, but don’t forget to always plan for the worst. Countries around the world have started lifting their restrictions. According to Tons, “companies who endure this situation will be more resilient and valuable going forward.” But “don’t jump on any opportunity and lose your original path. Maybe you’re benefiting now because you built the infrastructure to serve the right model, so stick to your model and don’t lose focus with the temporary, and maybe distracting, market needs,” warns Almentor. Teela has another view: “Maybe it’s the time to start a new venture, launch a product or a brand. And while people are staying home, they’re willing to try any product that is delivered to them.”
Who knows; maybe now is the right time to make your big move! Plan well and execute by day.
TL;DR (too long; didn’t read)
We were in touch with the founders of Algodriven, Almentor, Teela, The Luxury Closet, Tons and ViaVii. According to them, the current times are favoring those who act quickly, innovate, customize and stress-test. What matters is speed, empathy, communication and vision. And don’t just jump on any opportunity out there. Plan well and execute by day.
ArzanVC’s family post office was very busy the past month and we couldn’t be any prouder!
Our Eyad AlBayouk participated in an online discussion by Qoyod (April 16th), giving advice on how to invest during corona times.
LUNCH:ON has partnered up with Gulf For Good to allow all the app user to donate to children in Nepal, Tanzania, Uganda, Peru and Lebanon and keep them fed, hydrated and educated.
Swvl has collaborated with Egyptian Food Bank (EFB) to support day laborers during the holy month of Ramadan.
Meanwhile, Repzo is offering Jordan’s supermarket, cafe and restaurant owners their very own application where customers can order their fav food, drinks and meals safely and securely from their homes.
UAE’s iKcon introduced various additional safety measures, including an additional layer of protective plastic packaging for all deliveries. Also, all bike riders are no longer allowed to enter iKcon premises to keep them separated from the in-house staff.
And finally, with all the teaching/learning happening online, Reportcard’s student CRM with an integrated online collaborative classroom becomes definitely handy! Reportcard also hosted a webinar on “Teaching Online with Zoom”.
Latest Jobs @ArzanVC Family
Those of you who recently had to downsize your company workforce, don’t hesitate to contact us and we will help your former employees to find a new job in other startups.
Rehydrate during the night and stay positive. Better times are just around the corner.