After the go-go years of 2020 and 2021, the global tech industry fell into recession in 2022. Funding dried up, revenue growth slowed and layoffs started. And we are certainly not out of the woods yet.
Ben Thompson has written this article detailing the four key drivers of the tech recession (which he labels the ‘four horsemen’) and points to examples of each from some of the major tech companies.
A couple of the horsemen are well covered: The COVID hangover and The End of Zero Interest Rates. But the other two are less discussed: The Hardware Cycle and The App Tracking Transparency Recession.
For those of us invested in the tech sector, these are the trends to watch and the challenges the companies we invest in need to overcome.
This is an excerpt from our Thought Starters email. Once a week we send you 5 interesting articles that have caught our attention, to get you thinking. No spam, we guarantee.