As you may know…
The Boardroom angels and I recently dropped a combined $100k into a startup that’s changing the way job placement is done by using proprietary AI and machine learning technology.
You see, this is a pivotal moment in the history of the world…of our country. We’re seeing unemployment levels never before seen.
So, yesterday I asked Angela (the founder) a very pointed question about this situation.
What role do you see your startup playing in bringing the jobs economy back to where we once saw it?
For candidates –– We will continue surfacing real jobs (not fakes or duplicates) in real-time and match people to jobs they might not have known of…or thought of looking for…based on their past experiences and transferable skill set.
For companies –– Our technology gives companies the ability to surface qualified candidates immediately, so that when they’re ready to re-open or expand… they have the workforce to support their efforts.
Angela expects to match 150,000 candidates to jobs in the next 3 months.
And if she can close a BIG deal she’s working on…
That number would climb to around 2.5M jobs matched.
We talk about disruptive startups and how they’re the ones to rise up during times of massive change and chaos…
And we’re betting big on what Angela is doing and where her company is going –– You too can make your mark and become part-owner.
But there’s more to this story of recovery…
An Unprecedented Economic Environment
The COVID-19 pandemic has created an economic environment like we’ve never seen before. People are struggling to get by and businesses have taken a turn for the worse in almost every industry.
To move forward as an investor, you need to know the forecast. This means understanding the reality of the situation, knowing what comes next, as learning how you can continue to succeed investing in startups.
The great thing is, some of the best opportunities coming out of the pandemic are startups like this one.
In reality, right now is one of the best times to win big as an angel. A startup that can solve the problems we are facing or capitalize on social change has a great chance to succeed.
COVID-19 Effect on the Economy
Unemployment is through the roof, consumer activity is down, and supply chains are overloaded. Q2 of 2020 was as bad as predicted and the end of 2020 looks the same.
According to the World Bank, the current forecast predicts a 5.2% decrease in global GDP in 2020, the worst global recession in decades. This is despite the efforts of governments to counteract the recession with new policies and financial support.
In the U.S., the economy shrunk by an annual rate of 32.9% between April and June. This is the sharpest contraction since WWII.
In July, after four months of decline in unemployment, the number of unemployment claims shot up to 1.4 million. Despite the confidence that things were slowly improving, the unemployment crisis remains.
Uncertainty in the workforce is another major issue.
- A decade of job growth was lost in six weeks.
- 26.4 million people aren’t planning to return to the job they had before the pandemic.
- Only 12% of workers definitely think they will return to their previous job.
While the global economy has slowed, some areas are growing faster than ever.
E-commerce has increased by $52 billion. Many startups in healthcare, remote working, consumer goods, and social media have pulled through.
For investors, opportunities are still out there. You just need to find the right verticals and invest in startups that check all of the boxes. Regardless of what else is happening in the world, you can find startups thriving.
Startups Solving Unemployment
We recently found a startup that is innovatively addressing the unemployment problem.
Layoffs, temporary or indefinite leaves, and remote working have uprooted and disturbed the workforce. Many people have had to make big changes to get by.
Following this uncertainty, we will see a major rehiring process as things clear up and people head back to work.
The problem is — recruiters and HR departments are understaffed and won’t be able to handle the rehiring process. Entire workforces will need to be restocked in a short period, pushing companies to the limit.
Another difficulty of rehiring is the demand for zero-bias hiring practices. With racial tensions at an all-time high in the U.S., the push for diversity has never been greater.
While recruiters and hiring managers rush to keep up with the demand for new workers they will need to maintain diversity and avoid bias at all costs.
So how will big companies under pressure hire millions in a short time while eliminating 100% of the bias? AI-driven job matching platforms.
Right now, our members have the chance to invest in an innovative job matching startup.
The widespread upheaval of the workforce has created one of the greatest market opportunities in the last 100 years. Many entrepreneurs are rushing to capitalize on this.
So, what is this startup’s unique advantage?
The company has put in the R&D years in advance. They started with the goal of zero-bias hiring from the beginning and created 400 APIs to make it work. The founder estimates that the current position of the startup puts it about two years ahead of any competitor on the market.
The global pandemic catapulted the startup into $300,000 in sales in just a few weeks during the worst time to do business in the last 10 years.
Since then, the immense value of her product has been identified by some of the biggest companies in the world.
Opportunity and Recovery in Startups
This is just one example of a startup succeeding by solving COVID-19 problems.
While the economy as a whole is in a bad place, that doesn’t mean that a keen investor can’t succeed. Startups can boom through a recession when the market is right.
Out of the Great Depression came General Electric, HP, and Disney. After the Great Recession, several digital startups like Uber, Airbnb, Square, and Venmo swooped in and took over.
These companies rode with economic changes, not against them. By finding opportunities that either solved the problems of their day or worked around them, these companies thrived.
We are now in a spectacular position to invest in the next wave of startups that will come out of this recession.
Here are a few industries to watch out for.
Best Industries For Startups Right Now
1. HR Tech
The unemployment crisis will inevitably be followed by a massive rehiring process. Startups that use artificial intelligence to match people to jobs without bias will be necessary — there is already a great demand for them.
The job matching startup we mentioned can do in two seconds what a recruiter can do in a week. Soon, tools like this will be fixtures in the tech stacks of HR departments across the globe.
2. Home Services
Essential home services like plumbing, roofing, and HVAC are incredibly resilient to recessions. There is a constant demand for them and they can’t be neglected or DIYed.
While these types of businesses aren’t usually associated with rapid growth and scalability like startups, entrepreneurs are finding a way to change that.
In this space, we found a startup that is half tech company and half investment fund. They buy essential home service companies and optimize them. By simply increasing marketing budgets and running market research, these often dated businesses can see significantly increased profits.
The opportunity in this market comes from the aging owners of these companies. They want to retire but have no one to pass their work on to. They are willing to sell their business to someone willing to take care of it. This is where the startup comes in — building trust with owners and getting great valuations of the home service companies because of it.
The startup is building a stable portfolio of these businesses that people can then invest in. Investors even earn dividends, a rare offering in the startup world.
3. Digital Marketing
Lastly, with so much economic activity happening online, digital marketing solutions are positioned for success.
On top of that, much of the workforce has taken to home-based entrepreneurship in the form of blogging, Youtube, Instagram, and other digital platforms. These “influencers” have significant sway on the buying habits of their audiences.
Many startups are now connecting the dots and tapping into influencers as legitimate marketing channels.
We found a startup that uses data to connect brands to viable influencers. They specifically target small- to medium-sized businesses that don’t have big marketing budgets. SMBs need practical and affordable marketing tools.
That’s where the startup comes in. SMBs are matched with influencers and existing content is distributed to their audiences. The results are trackable, actually showing ROI unlike other influencer marketing platforms that are more “spray and pray”.
As more businesses try to cash in on the e-commerce wave and more influencers appear, solutions like this will have great success.