NL#1 Surviving the Tech Freeze 2023-2025

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What happened ?

As we journey through 2023, the landscape of the technology sector is distinctly different from the rapid growth trajectory we've witnessed in previous years. Today, we delve into the heart of this "Tech Winter," unpacking its implications and exploring strategies for resilience and growth.

The Mirage of Pandemic Growth: During the pandemic, the tech industry saw unprecedented growth, a phase now revealed as a temporary surge rather than a sustainable trend. In the current climate, many enterprises have reassessed their spending, leading to widespread cutbacks in IT budgets. This recalibration marks a departure from the earlier liberal investment in technology.

A Cautious Outlook: Industry experts like Scott Raney of Redpoint echo a sentiment of cautious optimism. The consensus is that while recovery is on the horizon, a swift return to the boom times of yesteryears remains unlikely. This conservative stance is shaping the strategies and decision-making processes across the tech landscape.

Rethinking Priorities in Enterprise Tech: The focus is now shifting towards prioritizing essential projects, with many previously funded initiatives losing their financial support. This change signifies a more strategic approach to tech investment, where value and necessity drive spending decisions.

The Challenging Path Ahead for Tech Companies: Tech companies, particularly startups, are grappling with these evolving dynamics. The anticipated "reckoning" suggests that the industry might still be in the early stages of fully understanding and adapting to these challenges.

AI: A Beacon of Opportunity: Despite the prevailing headwinds, areas like artificial intelligence (AI) continue to offer promising avenues. The focus is now more on practical applications of AI, especially in empowering developers to create innovative AI solutions. This trend indicates a maturing perspective on how AI can be leveraged for tangible benefits.

Evolving Open-Source Strategies: Another notable shift is in the realm of open-source projects. Moving away from foundation-led initiatives, there's a growing preference for company-driven open-source projects. This evolution reflects a strategic alignment of open-source efforts with business goals.

Navigating the Winter: In these times, adaptability and strategic foresight are key. Companies are advised to focus on core competencies, invest wisely in high-potential areas like AI, and remain agile in the face of changing market dynamics.

Tech Uchrony

Predicting the trajectory of the tech industry for 2024 and 2025, especially in the context of a current downturn or "tech winter," involves considering past crises and recovery patterns in the sector. Here are some hypotheses based on historical data and trends:

1. Gradual Recovery Post Downturn: Historically, the tech industry has shown resilience after downturns, often rebounding with gradual recovery. We can expect a similar pattern in 2024 and 2025 as companies adjust to new market realities and refine their strategies.
2. Shift in Investment Focus: Following a crisis, investment priorities tend to shift. In the coming years, there is likely to be increased investment in resilient and emerging sectors like AI, cybersecurity, and health tech, reflecting learnings from the downturn. #deeptech
3. Increased Mergers and Acquisitions (M&A): A common post-crisis trend is a rise in M&A activities. This is likely to continue into 2024 and 2025, with larger companies absorbing smaller ones that have innovative technologies or have carved out unique market niches.
4. Focus on Sustainable and Ethical Tech: There's a growing global emphasis on sustainability and ethics in technology. This trend is expected to gain more traction, influencing investment decisions, consumer preferences, and regulatory policies.
5. Increased Regulatory Scrutiny and Compliance: As the tech industry continues to mature, increased regulatory attention, particularly in areas like data privacy and AI ethics, is highly probable. Companies focusing on compliance and engaging proactively with regulatory changes could stand out.

Tech Executives, move away

• Embrace Diverse Opportunities:Look beyond traditional roles or industries you've worked in.Consider sectors or companies experiencing growth, even if they're unfamiliar.
• Expand Skill Set and Experience:Opportunities in new areas can broaden your skill set and provide valuable experience.Embracing different roles can offer fresh perspectives on leadership and management.
• Innovative Problem-Solving:New environments can challenge you to apply your skills in innovative ways.Solving different types of problems enhances your adaptability and creativity.
• Networking and Relationship Building:Stepping outside your comfort zone allows you to build a broader professional network.Interacting with a diverse group of professionals can open up new opportunities and insights.
• Personal Growth and Resilience:Navigating unfamiliar territories can significantly contribute to personal growth.Overcoming challenges in new areas builds resilience and confidence.
• Potential for Unexpected Success:Many successful executives have found unexpected success in areas they initially knew little about.Openness to new experiences can lead to discovering hidden passions or talents.
• Adapting to Industry Shifts:Industries are constantly evolving; staying flexible ensures you remain relevant.Learning about different sectors prepares you for broader leadership roles.
• Enhanced Marketability:A diverse career portfolio can make you more marketable and attractive to future employers.Demonstrating success in various contexts shows versatility and a capacity for learning.
• Reinvigorate Your Career:New challenges can reinvigorate your career, providing a fresh burst of motivation and energy.Changing environments can reignite your passion for work and leadership.
• Leadership Development:Leading in different contexts develops your leadership style and effectiveness.Exposure to various organizational cultures and practices enhances your leadership toolkit.

Who I am ?

I am Gregory Herbe, I began my career in the early 2000s, initially focusing on hiring for early tech startups. I then progressed to leading a mid-sized headhunting agency, gaining extensive experience in talent recruitment. After this, I ventured into entrepreneurship, founding my own startup, and leading it to an exit. Now, I utilize my broad recruiting and HR expertise to assist founders, guiding them in building strong teams and navigating the dynamic tech landscape. My focus is on sharing the valuable insights I've gained over the years to support the next generation of tech leaders. My consulting company is A-player . Today I am working as Talent Acquisition Specialist at Glopal