The Fuel

Despite the unpredictable hiring market, growth and innovation continue to lead the charge. Growth and innovation that comes from private and public investments.

Venture Capital and Private Equity are repricing and still available for good models.

The venture markets are still slower than public markets in readjusting for the markets at hand. The emerging technology markets had a very frothy run over the past 5 years and we can expect flat rounds, and more likely, down rounds when it comes to follow up financing activities. The ego and pride of investors, entrepreneurs, and existing investors are likely to get in the way of new financings.

Public markets are stabilizing and appropriately adjusted. The IPO and SPAC markets are going to have a tough year. The fact that companies have a less than ideal path to public markets and venture dollars are going to be more prudent with their investments - this will make the acquisition pathway to exit more likely. Having said that, it will be a buyers market.

Tech and the Reckoning

There were 153,937 tech workers laid off from 1,020 companies in 2022, according to Layoffs.fyi . The internet sector is the tail that wags the dog. For years, companies like Twitter, Apple, and Amazon have gotten away with massive over-hiring of talent, over inflated salaries, and working 15 hours a week, rather than the 50 other tech employees are used to. Following the intense scrutiny and watchful eye the internet sector faced in 2022, all eyes will be on the biggest names in the game.

In 2022, Elon Musk purchased Twitter and pulled back the curtain on the model, exposing the status quo of the tech company workplace. Amazon has been overbuilt from the COVID era where online purchasing was the only way to go. Apple, Lyft, Shopify, Netflix, Stripe, and more have felt the shift, with stock prices falling and employees vocalizing their unhappiness.

Over-promising and over-optimism was the name of the game in the internet economy. Those business models, like the entitled generation that has been affected by last year’s shift, are getting an overdue dose of common business sense.

The Cycle

• Hard times create strong businesses.

• Strong businesses create good times.

• Good times create weak businesses.

• Weak businesses create hard times.

What you should be doing

1. Build your brand. Make sure your LinkedIn, Social Accounts, and online presence illustrate what you would bring to the table. Great brands come out of hard times much faster than those that do not have a brand.

2. Double down on your existing talent. Enhance training and skills. Increase communication with your team. Don’t be afraid to include them in tough conversations as you lead them through the battle. The great ones love the battle, by the way.

3. Hire when there is blood in the streets. Short-sighted companies will not take care of their high performers like they should. Bring in “tip of the spear” individuals. Those who drive sales, R&D, innovation, and new business models in your category. Then, outwork everyone.

As we go into 2023, I am incredibly optimistic for the year and for the organizations that are built for revenue, have great leadership, hypercommunicate with both their market and customer base, and empower their teammates. The best is yet to come!

Joe Mullings Chairman & CEO The Mullings Group

About Author:

Joe is the Chairman & CEO of The Mullings Group The Mullings Group Companies, including TMG Search, Dragonfly Stories and TMG360 Media. The search firm is responsible for more than 8,000 successful searches in the medtech / healthtech / life sciences industry with clients ranging from multibillion-dollar companies to emerging tech startups worldwide. Dragonfly Stories, which produces attention and awareness campaigns for companies globally, is the media production company behind the AwardWinning video docu-series, “TrueFuture,” of which Joe is the host. TMG360 Media utilizes the power of media and outreach in medtech / healthtech to move businesses and health forward.