Growth Quarters

Why US-based unicorn HackerOne keeps their dev team in Groningen

Design & Dev, Future of Work, Growth Quarters, House of Talent / Ryan Harris / February 22, 2023

In 2012, two former students from Hanze University of Applied Sciences in the Northern Dutch city of Groningen, took a major gamble. They made a list of 100 companies they’d like to work for — including Facebook, Twitter, Spotify, and Uber — and hacked them. As you can imagine, this little stunt certainly got their attention.

Now, $159.4M in investment later, their cybersecurity company, HackerOne, reached unicorn status in 2022 and counts big players like Nintendo, AT&T, Hyatt, GM, and even the Pentagon amongst its clients.

HackerOne is a bug bounty hunting platform that enables companies to enlist the help of ethical hackers across the globe to identify and mitigate security vulnerabilities and data breaches, which cost companies an average of $4.35 million.

While founders Jobert Abma and Michiel Prins now live in San Francisco, where HackerOne’s HQ is based, they surprisingly decided not to move their development team across the pond. In fact, over 50% of their engineering and product design team are still based in Groningen today.

The question is, does it actually make sense to keep half of your dev team in another time zone and is this a strategy other founders should actually consider? And why Groningen? With a global tech powerhouse like Amsterdam just a few hours away, why keep the team in this Northern Dutch city?

Follow-the-sun model

The story of HackerOne’s founders is the typical tech fairytale come true. Abma and Prins grew up across the street from each other in a small town in the North of the Netherlands and spent their time playing video games, building websites, and, of course, pulling the occasional prank hack.

They went to Hanze University of Applied Sciences in Groningen together, where they identified a major data leak in the institution’s system. Realizing this could be a successful business venture, they started a consultancy firm and built a small team of like-minded ethical hackers.

After gaining the attention of Silicon Valley’s biggest names, they realized it was time to spread their wings abroad.

HackerOne's Groningen office — HackerOne’s Groningen office

At the same time, keeping part of their dev team in Groningen presented a great opportunity to introduce a ‘follow-the-sun’ model, ensuring someone is always online and ready to tackle any issues that arise.

“The internet has no borders,” Abma says, “We have tens of thousands of people every single day that use our platform to collaborate and work together. We rely on such a distributed community of hackers, that I don’t see why we can’t do that as a company.”

Indeed, HackerOne facilitates this exchange between global, ethical hackers and companies by providing a platform where they can connect, without having to worry about tax forms, background checks, payment security, and other barriers.

Some who visited fell in love with the city and moved permanently.

While there are a number of benefits to having a distributed development team, it also comes with its challenges.

“Working across time zones requires everyone to become good at written and asynchronous communication. It’s important to let people take time to become good written communicators,” Abma says.

Another important point he shared is to make sure engineering and adjacent roles continue to be regularly exposed to other departments, such as sales, marketing, and customer success. This helps build context, breaks down silos, and allows teams to create better solutions.

One way HackerOne does this is by sending their Groningen team to visit the San Francisco HQ a few times a year and vice versa.

It’s important to enable people to build a stronger bond by having them spend time with each other in person, at least twice a year. They love that aspect of having a distributed team because they get to visit different cities and meet new people, but still have the comfort of being able to live in Groningen, which I think is a great city to live in and raise a family.

The benefits of a cosmopolitan city, on a smaller scale

Aside from the business benefits of maintaining a distributed team model, as Abma explained, most of the team simply wasn’t keen to follow them to San Francisco.

“Many people were starting their families and had significant others there, so they couldn’t move to the other side of the world, and we didn’t necessarily want them to.”

For a city of just 235,000, Groningen has an extremely cosmopolitan vibe. Through its two universities and growing startup community, it attracts almost 6,000 international students per year and a growing number of expats.

Some HackerOne employees who visited the Groningen office from San Francisco fell in love with the city and decided to move there permanently. Abma suspects it’s these ‘expat ambassadors’ turned hiring managers who have been key to getting more global talent on board by sharing their first hand experiences of moving to the city.

I think it’s good for Groningen to just be Groningen.

For Isuru Ranaweera, Senior Software Engineer at HackerOne, moving his family to Groningen was an easy transition.

“What I enjoy about Groningen is that it’s less busy and I actually find it a calm city compared to other places. Additionally, I feel safer here, making it a good place to raise my child. Another bonus is that the city is very green, with plenty of trees.”

Canal view in Groningen — Photo by Stella Dekker Fotografie

Another great policy HackerOne has in place is that they pay developers in Groningen the same rates they would pay in Amsterdam.

As an expat, settling here was easier compared to my friends who have settled elsewhere in the Netherlands. Housing is available and affordable, which I found beneficial when migrating to a different country. Reducing costs is important and living here helped me to lower my housing costs during my first years of residency. The commute is also easy as you don’t really need a car. We’ve been living here with a child and a dog without having a need for a car, which is great. I also like staying away from the chaos of big cities.

Having a base in a university town also has the added benefit of access to a pool of young talent. Groningen in particular has two great universities located in the city that attract students from across the globe. Zahra Putri Fitrianti, Software Engineer at HackerOne, was recruited after studying and working at the University of Groningen as a teaching assistant.

Personally, I really like the atmosphere in the city, it’s very suitable for students as well as workers. The city has a sense of tranquility that helps me be productive at university and work. There’s also a lot of great hubs where you can work, such as the Forum cultural center that provides great support for people that spend their day there, albeit sometimes being quite crowded especially during exam season.

Zahra Putri Fitrianti, Software Engineer at HackerOne

Groningen is changing, but hopefully not too much

Groningen is quickly becoming a more recognizable name in the global tech community with new startup success stories and university spinoffs putting its ecosystem on the map. Nonetheless, there are a few changes Abma still hopes to see that will help the city reach its potential:

For Groningen to really upscale that vibrant ecosystem, there are some fundamental building blocks that still need to be built, like more access to funding, tax breaks, etc. What would make me really proud is if, ten years from now, some of the people who we initially hired at HackerOne went on to found their own companies in Groningen. If they can make that transition, it would show the building blocks are really in place. Although I’m happy to see companies like HackerOne have a presence there, I’d like to see more of that.

However, having lived both in Groningen and now (arguably) the capital of the tech world, Abma hopes these oncoming changes don’t impact the character of the city:

“I think it’s good for Groningen to just be Groningen. It doesn’t need to be the next Silicon Valley. There are a lot of downsides to that kind of ecosystem as well.”

Vismarkt Groningen — Photo by Stella Dekker Fotografie

The question is, like HackerOne, will Groningen’s humble beginnings morph it into a tech giant of the future? Probably not. But it will likely be a place of choice for expats and young talent looking for the perfect balance of exciting opportunities and compact city life. Unlike Silicon Valley’s cut throat culture, Groningen’s tight knit tech community can be likened to the theme song from Cheers: it’s likely everybody will know your name and actually be happy that you came.

If Groningen has piqued your interest, check out some of the great tech jobs open in the city on the Make it in the North.nl job board.

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These are the next 6 industries that are ripe for tech disruption

Growth Quarters, Insider / Mike M. / February 18, 2023

When it comes to investing in innovation, certain industries have flourished over others. Those that haven’t are now facing a do or die situation to keep up with the demands of a modern society, the ever-prominent concern around the climate crisis, inflation issues, and an aging population.

Looking at the global stats Tracxn collected from 230+ sectors between 2013 and 2023, it’s clear which industries — education, hospitality, agriculture, industrial manufacturing, real estate and construction, and commercial airline — have fallen behind, received less funding and seen less successful startups being founded. Whether it’s been down to high costs, difficulty in securing funding due to risky innovation and uncertain ROI, or other financing issues, these industries will require more of a focus moving forward.

As our colleague Arno Nijhof, who leads the company’s innovation arm TNW Programs explained, the move towards more circular and transparent sustainability practices, plus recent supply and demand issues have put increased pressure on many of these industries to adopt new solutions now:

Corporate innovation is more and more focused on providing a positive impact on the world with many looking for new solutions to decarbonize and, at the same time, build a more resilient supply chain. TNW Programs works with a lot of parties, corporates, and companies to identify these opportunities by scouting and analyzing new technologies, startups, and markets. The world is asking for change and its new technological developments that will create the solutions we need to reach those goals.

Here’s a closer look at the industries in question, together with some of the startups challenging the status quo.

Education

Over the last few years, our lifestyles have changed significantly and so have the ways we work, interact, and communicate with each other. However, education has failed to adapt and align with people’s behaviors, tendencies, and society as a whole, with very few long-lasting technological disruptions over the last decade. For example, although 90% of students say they prefer learning online, rather than through traditional methods, the education sector only accounts for 21% of the global learning management systems (LMS) market.

Cloud-based platforms capable of engaging remote students globally are in greater demand. Equally, there is greater understanding that a one-size-fits-all approach doesn’t work when it comes to education, but there’s still so much more educators, parents, and policy makers need to understand to better tailor methods to different types of learners. Digital tools and advanced analytics are needed to assess and track learning progress for educators to have an ongoing insight into what methods are resonating well, and where there’s room for improvement.

Many companies are also starting to look at using VR/AR to enhance the learning process. Startups like Belgium-based Altheria provide VR training experiences that companies can use and tailor to their specific needs.

When it comes to edtech, according to Tracxn there are around 36,600 startups providing technology solutions to businesses and consumers in the education industry. Of that, only 5,500 companies have been funded over the last 10 years, receiving $31.9 billion in 5,850 rounds of funding. More is needed to allow these businesses to flourish and deliver the modern solutions our schools and educational institutions need.

Hospitality

The hospitality industry has been faced with a number of challenges in recent years, from the sudden loss of revenue during the pandemic to a shortage of staff to meet increasingly high demand. At the same time, hotels and vacation rentals are feeling the pressure to improve their sustainability practices as travelers’ preferences for eco-friendly accommodation grow.

Few hotels and vacation rentals are currently employing digital tools to their advantage, for example using AI to automate sharing information and answers with customers before and during their stay, or installing a smart in-room setup that connects to customers’ mobile devices can significantly enhance the customer experience.

Collecting and analyzing data at all touchpoints throughout the customer journey can help proprietors create a more detailed customer profile. Making use of a cloud-based property management system (PMS), such as Germany-based Apaleo, will help automate processes and allow staff to focus on the personalized, high-touch aspects of the customer journey.

With only 3,420 startups and just one unicorn launched in the last 10 years, the hospitality industry is in need of a sprucing up. There’s so much missed opportunity and need for a complete digital transformation, from both the customer experience side of things, as well as the proprietor’s side.

Agriculture

As the world’s population continues to grow, feeding everyone in a sustainable, affordable way is more challenging than ever. The global population and demand for food will increase 70% by 2050, which will continue to put a strain on agriculture and food production.

The biggest challenge we now face is how we can scale up global food production in a way that reaches the entire population, without causing irreparable damage to the planet. Of the 20,600 startups providing tech solutions to the agriculture and food industry in the last 10 years, 2,410 have unfortunately been deadpooled.

5,560 agritech startups, however, have received $52.4billion in funding, and 22 unicorns have been created. Investment is received from many sources: “For example, TNW is working with Rabobank to find innovative solutions that will help its agricultural sector clients to decarbonize,” says Nijhof.

One startup that’s created an interesting product, which is already available to the general public, is Beewise. Based in the Netherlands, the startup uses modern technology to monitor beehives and support healthy pollination and efficient honey harvesting. Anyone can order their own smart Beehome and easily track its progress using an app.

Industrial Manufacturing

Now more than ever the manufacturing industry needs to transform to increase operational efficiency, scale smart factory initiatives, improve supply chain resiliency, and improve sustainability with innovative new materials and processes. Within the next year, 62% of manufacturers plan to focus on robotics and automation, which will likely begin to address some of these needs.

Startups like Mecuris are pushing the boat out by reimagining traditional techniques into digital tools that are intuitive and easy for users to operate when designing orthotic & prosthetic products.

When it comes to developing and working with more sustainable materials, the industry can reduce its reliance on finite materials and energy. There is additionally greater potential for modern materials to allow manufacturers to create products with a longer lifespan, further improving efficiencies, and reducing the need for frequent upgrades and replacements. Finally, adopting a more circular economy allows materials and products to be repurposed, reducing production costs as well as reducing greenhouse gas emissions.

However, while manufacturing has seen some progress, there’s still a lot more potential for the industry to grow and develop. The industry has seen just 970 funded companies, and only 36 series C+ companies. Nevertheless, there is a lot of opportunity for development, and 61% of manufacturers are already planning to partner with specialized tech companies to help drive their growth strategy in the next year.

Real Estate and Construction

Similar to industrial manufacturing, stakeholders in real estate and construction are expecting to see more sustainable solutions being implemented.

However, to make the industry truly sustainable, more transparency is needed, with standardized grades across different countries, as well as accurate traceability of maintenance, analytics, and reporting.

The whole market, process of sales, and construction and renovation needs to evolve, innovate, and increase its digital maturity for professionals to be able to operate more efficiently. 41% of real estate firms admit that keeping up with technology is their biggest challenge, while 30% worry about competition from emerging virtual firms.

Making use of the tools provided by startups like EagleView, which enables greater accuracy and access to property data through the use of autonomous drones, is a good place to start.

In the last 10 years, the industry has had 5,410 startups receive $68.8billion in funding. A significant increase in digital innovation will ultimately be needed for the industry to become more efficient and reduce both monetary and environmental risks and costs.

Commercial Airline

Air and airport congestion continue to be a challenge, but smart technology could help to ease this and enable more user-friendly flight and luggage tracking. Equally, things like ML and AI have the potential to improve efficiencies within the aircraft, to spot faults quicker and help to maintain the health of its components and infrastructure. And, like most other industries, innovation is needed to improve the environmental standards of aviation, for example improving fuel efficiency, in the face of climate change.

Having received the lowest amount of funding since 2013, and $490million in aviation IT and $2.9billion in aerospace tech, the industry has only seen 1,380 startups developed. There’s a lot of opportunities, particularly for companies offering software solutions to the aviation industry and providing tech-based solutions to aircraft manufacturers to transform and improve the industry.

Startups like UK’s Hiiroc have already developed an efficient method for producing zero CO2 emission hydrogen through use of Thermal Plasma Electrolysis technology, which lowers both costs and emissions for commercial airlines.

As each of these industries continues to evolve, more investment, and innovation will be needed to give them a boost. For more insights, strategies, and tips on how to boost innovation within your organization, contact our team here.

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Why Groningen is the coolest tech city you’ve never heard of

Growth Quarters, House of Talent / Ryan Harris / February 14, 2023

It’s no secret that the Netherlands is a European leader when it comes to the tech and startup sectors. The country attracted €1.8bn in investment in 2021 alone, more than double the €790m raised in 2020.

While many people think of Amsterdam as the country’s startup capital and a global tech powerhouse — and with success stories like Adyen, MessageBird and Mollie, they’re not wrong — the Netherlands’ lesser-known cities are becoming favorites amongst expats who want to be part of the country’s dynamic tech scene, without the hustle of big city life.

Take Groningen. Known as the country’s “capital of the north,” Groningen is a thousand-year-old city with a thriving student population thanks to its universities. This plethora of young, international talent, ground breaking research, and the presence of corporate powerhouses like IBM and Google, make Groningen’s tech scene one to watch.

For international talent looking to launch their tech career abroad, Groningen may be the answer.

Small in size but big in opportunities

Groningen may not be big, but it’s quickly becoming recognized for its startup scene.

The province of Groningen has just had its second consecutive year as the fastest-growing region in the Netherlands in terms of job growth, with around 1.2k local jobs being created by local startups.

Margarita Bernal-Cabas, Operations Resource Manager at EV Biotech, a company that develops microbial cell factories for industrial production, tells TNW that Groningen is an exciting place to be for its emerging biotech sector, which is churning out innovative companies thanks to its proximity to universities and wealth of local professors, research, and sector meetups.

“There’s been a load of new startup companies… there’s a vibrant and growing biotech community with an exciting future and limitless possibilities,” she says.

And while it may seem like a drawback, one benefit that sets a startup ecosystem like Groningen apart from larger cities like Amsterdam is its small size.

Stella Tsoutsouri, a mobile developer at telecommunications startup Voys, says because the city’s ecosystem is small, it allows easier access for people to network and make meaningful professional connections: “There are plenty of meetups, conferences (one of the biggest Python conferences is in Groningen), there is a new library/cultural center that holds tech talks, the University has plenty of initiatives like venture lectures and conferences, so there’s a lot of great things happening.”

Tsoutsouri says that Groningen’s size makes it easier for new startups, initiatives, and groups to take off. For example, when she moved to Groningen from Greece, Tsoutsouri was surprised to find that the gender gap in IT students was worse in the Netherlands than in her home country. She went on to found the Women Devs group, a community dedicated to women developers working or studying in tech.

“Here, the people who are active in the tech scene are so visible, that makes it very easy to create a company or an initiative with those people because they’re very accessible… For example, last year my group Women Devs connected with another group in the city, Lean In Groningen, and together we organized a web conference on International Women’s Day to share more knowledge with the women of Groningen about tech and other topics.”

Arne Bos, Managing Director at Parkos, a booking platform for airport parking, added that many of his friends who have moved to Amsterdam and the Randstad area face the challenge of finding affordable housing. But, for the same price as a tiny apartment in the outskirts of Amsterdam, you could easily find a nice accommodation in the heart of Groningen.

“There are a lot of new young ambitious companies, which makes it a great place to find a job. Combine this with affordable housing and life in a relaxed, calm but vibrant city.”

Top universities fuel innovation and student life

Groningen is home to top universities such as the University of Groningen, which is ranked in the top 100 universities in the world and has several Nobel Prize winners amongst its alumnae.

This means several things for the city’s tech ecosystem: a wealth of young international talent, spin-off funding opportunities, easy access to research institutions and professors leading in their field, and opportunities to network with a tight-knit community.

Groningen is home to two leading universities, the University of Groningen and the Hanze [University of Applied Sciences], bringing with it a great academic energy and student life.

“There’s quite a lot of study programs… we have a really big microbiology department and molecular genetics,” says Bernal-Cabas. “So there’s a really long history of the University. Very skilled professors, masters and PhD students. That creates a lot of opportunities and a lot of ideas.”

Proximity to universities means fresh opportunities for university spinoffs. The University of Groningen has seen several success stories including BioBTX, The Ocean Grazer Project, and the Sustainable Buildings initiative, which helps make buildings more energy efficient. There have also been a number of healthtech spinoffs from the University’s medical center including Ancora Health and VRelax.

For Tsoutsouri, this proximity made it possible to achieve a long-term goal:

“There is something that Groningen gave me that I wasn’t sure would be possible in any other city in the Netherlands: combining work with studies so I could support myself financially. I am working four days and doing a Masters in Artificial Intelligence at the same time. The way Groningen is structured gives you the opportunity to leave the office, go to class, and even go back if needed so it kept me present and energized both in the classroom and at the office. I think in a city like Amsterdam it would be impossible because of the distances. I’m very happy I could accomplish my dream: to get a great education, while still working in the industry.”

As she explained, for young and less experienced talent this can also make it easier to break into the professional world:

“Local companies want to absorb students as much as possible to keep that knowledge in the city. Companies do a lot of projects with the University and take on interns. They’re also more open to taking on junior professionals.”

A bite-sized cosmopolitan culture

“For me, the choice to move to Groningen was very easy,” says Victor Flick, Customer Success Manager at Klippa, a scaleup providing smart document processing powered by machine learning tech.

“I visited the city once before and had a great feeling about it: not too big, not too small, clean, nice architecture, lots of young people and it felt dynamic! Plus, the Netherlands is a really good country to live in, so I didn’t think too long about taking the opportunity.”

“I think we’re close to over 200,000 inhabitants, so it’s like 1/5 of Amsterdam,” says Bos. “But having a really young population means there’s also a really vibrant nightlife. I think Groningen is the only city in the Netherlands where bars don’t have a closing time. But also culture-wise, there are a lot of cool things going on with Eurosonic, which is a really nice music festival. It has all the facilities you need from the city such as cinemas, shops, etc. It combines the coziness of a smaller city with the facilities of a bigger city.”

This coziness, as Bos points out, makes Groningen highly accessible — everything from nature to museums and nightclubs is all within reach.

“On a bike, you can go within 10 minutes from one side of the city to the other which people really appreciate,” says Bos. “Also access to nature. I heard a colleague say he can just cycle in a few minutes to a lot of different parks, which is really nice.”

But a small population doesn’t mean a small-town mindset. Groningen is also praised for its international appeal, thanks to its universities and emerging tech sectors. “You hear a lot of English and German on the streets and occasionally also other languages, like Spanish, French, Chinese…” says Flick. “It gives expats a sense of belonging, and a sense that there are other people in this city living a similar life to mine: being in another country, and building a life here.”

So for international people looking to relocate and make Groningen their home, what should they keep in mind?

“Moving here, I would say the most important things to consider are the ‘legal’ things: registering in the city, getting health insurance, registering at a dentist/doctor. Also getting a bike, and lights for the bike,” says Flick. “On the other hand, as a non-Dutch person, you need to be aware of the straightforwardness of Dutch people… As a foreigner, it can sometimes be uncomfortable at first. So that’s a process you need to go through once you arrive here. Adapt to that directness and blend in. I would also say that Dutch people will really respect you if you are actually down-to-earth and direct like them, they see you more as one of their own.

But once you adjust, says Flick, “it’s such a great city to live in. You’re never bored.”

If you’re thinking of making a move to Groningen, here are some great resources to check out:

Make it in the North.nl – for finding jobs in Groningen
International Groningen – everything you need to know about relocating to the city
International Welcome Center North – help arranging a smooth landing in Groningen

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Launching a startup with friends? Follow these 4 basic tips

Growth Quarters, House of Talent / Ryan Harris / February 13, 2023

The new Netflix murder mystery film Glass Onion is a cautionary tale – but not about influencers, tech bros, or ironic architecture, as some have suggested. Glass Onion (along with HBO’s Succession) is actually a warning about the potential perils of going into business with your friends or family.

Such businesses are a huge contributor to any economy. Globally, between 70 and 80% of firms are co-owned or co-managed by family or friends. Close relations can be a great source of support and positive influence on a new idea or business.

My research, focusing on new business development within universities, shows that friends can be successful business partners. For students especially, entrepreneurial colleges and universities offer a range of support for friends to realize business dreams.

There are a few challenges when you start a business with someone that can be made easier when working with people you’re close to. Founders should trust one another, and understand each other’s likes, dislikes, and ambitions. If you and your partner have similar values and approaches to life, you’ll likely be able to predict how they’ll react in times of crisis or uncertainty. With this in mind, turning an existing relationship into a business relationship can be easily done.

The pitfalls

Of course, things don’t always work out. What can start as occasional bickering or disagreement about the direction of a new venture can lead to resentment, a decline in the business (and relationship) and even legal trouble.

A business involving family or friends can seriously disrupt work-life balance — which is critical to business success. Lack of boundaries and additional time spent discussing work can interfere with your personal relationship, leading to fatigue and resentment. It’s not realistic or healthy to talk about work all the time.

A family business spanning decades with the same people at the top may eventually stagnate, becoming overly reliant on what are now exhausted markets. This complacency, as with any type of business, can creep in and affect customer relationships, knowledge of competitors, and ability to innovate.

Without proper care, these issues can become commonplace. As happens in Succession, personality battles and power grabs can distract from productivity and threaten to derail the venture.

Protecting yourself and your business

Before getting started, it’s important to plan ahead. This should include creating a strategy for business partners to amicably exit the firm when necessary. It also must involve a consideration of the legal implications of a disagreement, and a plan to protect ideas, business contributions, and other intellectual property.

Research shows that in longstanding family businesses the existence of known successors can influence how seriously the founders take intellectual asset protection. Even with friends and loved ones, you should still document and register ideas, designs, prototypes, products, processes, and slogans.

Before you sign your ideas away (or write them on a napkin), here are five things to consider:

1. Transparency – what are everyone’s plans?

When embarking on a new business venture, it’s important to be upfront about intentions and goals – in the short and long term. What brought you all to this potential startup? What do you wish to achieve? These are questions you should ask.

2. Security – seek legal advice early

Along with officially registering the company, the owners should contact an intellectual property lawyer to receive expert guidance on fairly protecting initial and ongoing contributions with appropriate trademarks, patents, and copyrights where required.

3. Prioritise – stick to your strengths

This is what adds distinct value to businesses: remembering what skills you bring to the table. Even with friends, this isn’t an opportunity to simply hang out and have fun. Yes, you must enjoy your work, but time, money and livelihoods are at stake. A team comprised of many people with a variety of skills and experiences brings creativity, multiple perspectives, and resilience amid inevitable change.

4. Be kind – appreciate and consider life changes

Like the volatility of business, our lives can change instantly. Co-owners should be mindful of changes to working patterns, lifestyles, and important events to maintain health and happiness. This can be particularly relevant when friends co-owning a business are at similar life stages, such as starting a family or getting married. Showing compassion and preparing for these factors, when they arise, can reduce tension and conflict in the day-to-day running of a business.

Robert Crammond, Senior Lecturer in Enterprise, University of the West of Scotland

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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There’s already a gender gap in who’s leading the metaverse

Future of Work, Growth Quarters, House of Talent / Blake Jones / February 8, 2023

Here’s the truth: the tech industry has long had a gender imbalance problem, and it starts early. Globally, women obtain 53% of STEM university degrees, but in the EU only 34% of graduates in the field are women, according to data from Girls Go Circular.

That has obvious knock-on effects. According to figures from Eurostat, women hold only 17% of major technology jobs, such as programming, systems analysis, or software development.

Startup funding too poses particular challenges for women in technology. In 2021, despite a record amount of capital invested that year in Europe, women founders were on the receiving end of less than 1% of the total funding, or €400 million, according to PitchBook data.

And now, with the advent of the metaverse, these systemic problems are raising their heads again.

The metaverse’s gender gap

A virtual world, or a collective area created by the convergence of physical and virtual reality, the metaverse is envisioned as a shared space where people can interact and participate in a simulated environment that mimics the physical world — albeit in a more enhanced way. The metaverse is underpinned by six technologies known as “BIGANT,” which represents blockchain, interactive, gaming, artificial intelligence, network, and the Internet of Things.

Despite last week’s announcement from Meta that its metaverse division lost $4.279 billion in the fourth quarter of 2022, adoption is increasing. Gartner predicts that by 2025, 10% of workers will regularly use virtual spaces, up from 1% in 2022. It also says that by 2027, 25% of retail organizations with an ecommerce presence will have completed at least one proof of concept for tokenized assets using metaverse technologies.

Some companies are already leveraging the metaverse to build up hype, with luxury and consumer goods being particularly quick out of the traps.

At last week’s Samsung Unpacked event, the company announced that it will work with Google and Qualcomm on an upcoming mixed-reality platform. Apple, too, is expanding its footprint in the space, with reports indicating that its hotly-anticipated mixed reality AR/VR headset will arrive in the second half of this year.

Balenciaga gave one of Fortnite’s characters a digital Balenciaga-branded hoodie that could also be bought in real life for €725. Lacoste has created digital looks for Minecraft characters, plus a co-branded Minecraft collection of sportswear available to buy online, and Ralph Lauren created digital snow apparel for Roblox’s Winter Escape, pitched as “the ultimate holiday experience.”

But one issue persists. Right now, there is a significant gender imbalance in the metaverse.

McKinsey data shows women are using the metaverse more than men, both to achieve business goals and for leisure. McKinsey’s data reveals that 60% of women report they have implemented more than two metaverse-related initiatives in their organizations, and they are 20% more likely to implement multiple metaverse initiatives.

But, while they may disproportionately utilize its capabilities, women leaders in the industry are far more scarce. In the past five years, male-led metaverse companies received a higher share of total funding (90%) than women-led metaverse companies (10%).

This matters because the lack of equality has significant knock-on effects. Companies with 30% or more women on their boards have environmental scores that are one and a half times better, as well as four times more R&D investments than companies with no women. The bottom line is affected too: McKinsey says that companies in the top quartile for women on executive teams are more likely to have above-average profitability. Not to mention the fact that a lack of diversity on early-stage development teams leads to deeply ingrained biases and faulty products.

If you want to carve out a career in the metaverse and make a difference in this growing industry, there are plenty of interesting roles available, including the three below, plus many more on the House of Talent Job Board.

Lead Game Designer — Metaverse Solutions, Improbable, Remote

Improbable is leading the way in defining what the metaverse can be. The Lead Game Designer — Metaverse Solutions will be part of the Metaverse Solutions group, working alongside experienced game developers familiar with all aspects of the game development lifecycle. You will be directly involved in shaping both the technical and commercial direction of how metaverse experiences are developed and launched. If you are skilled in designing and documenting core-loops features, and limited-time events within a multiplayer context and have experience managing senior and junior designers across multiple design disciplines (e.g. level design, technical design, progression, single-player, multiplayer), then find out more about the job here.

Software Engineer (Leadership) – Metaworks, Meta, London

Meta is seeking an experienced Software Engineer to join the teams building the core platforms that enable the future of work. Meta wants to solve unique, large-scale, highly complex technical problems, and you will drive the team’s goals and technical direction to pursue opportunities that make the larger organization more efficient. You’ll effectively communicate complex features and systems in detail and understand industry and company-wide trends to help assess and develop new technologies. Interested? Find out more here.

XR/Metaverse Consultant, Komodal, Laval

Leading provider of consulting services on virtual worlds and the future of the metaverse, Komodal is based in France and is seeking an XR/Metaverse Consultant. You’ll join the production team and creatively research, experiment, and go beyond conventional technical limits to detect tomorrow’s innovations related to the metaverse. The role requires a Bac+5 in engineering, IT, design or significant experience in the field of immersive technologies. The cnadidate will also needknowledge of XR, virtual worlds, and the metaverse. Apply for this job here.

There’s already a gender gap in who’s leading the metaverse Read More »

6 ways EU startups can cut spending during the recession

Entrepreneur, Europe, Growth Quarters, Tech / Blake Jones / January 9, 2023

With a global recession impending, Europe’s startups are feeling the pressure. Investment opportunities are dwindling and customer acquisition is getting harder. So what can startups do to survive during this time?

From hiring freezes to spending cuts, founders are making preparations to get through the recession unscathed. There are many ways to cut spending during this time that don’t involve layoffs, it’s just about being a little savvy and thrifty, and looking out for programs that are designed to give startups a boost.

Here’s your go-to checklist for smart ways startups can cut spending and save during the recession:

1. Scrap the office and go fully remote

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Thanks to the pandemic, most people are now accustomed to working remotely and interacting with their teams virtually. Although many businesses have been navigating back towards being in-office at least a few days a week, it costs a lot to hold a space that’s not being used all the time.

Either ditching the office altogether or moving to a co-working space can save a lot of money. Kate Lister, President of Global Workplace Analytics estimates, “a typical employer can save about $11,000/year for every person who works remotely half of the time.” For those that go fully remote, asynchronous working will help employees maintain flexibility during the day, and create a work-life balance that suits them and allows them to be most productive.

If you’re worried about maintaining your company culture, gaining some tips and inspiration from businesses who were operating remote models before the pandemic can be useful. Buffer and Zapier, for example, are both remote-first businesses, with global teams collaborating together from all over the world. Both businesses find that maintaining frequent, open communication is essential for the success of their remote teams.

One important thing to remember is that fully remote companies should always factor in some budget for in person team-building events throughout the year to foster team spirit and connection.

2. Choose your cloud provider wisely

Cloud services are used by many startups for everything from basic tasks like data storage, to the more advanced functions like AI and machine learning. But many also end up in a situation where they accept free cloud credits and end up taking on products and services they don’t necessarily need.

Choosing the right cloud provider can be tricky, especially as the business develops and your needs change. Ideally, you’d want the flexibility to be able to reconfigure your cloud architecture or even switch providers as these needs change, however, many startups get locked into contracts with high egress fees.

Adopting a multi-cloud strategy could be a good solution allowing you to select the services most suited to each of your team’s needs and take advantage of reserved instances and other discounts. There are also some new cost-saving cloud technologies on the market now, such as Serverless technology and Kubernetes autoscaling.

Also be sure to check out Scaleway’s Next 100 Startups Shaping Europe’s Future Program designed to support up and coming startups during the recession. If selected, Scaleway will cover up to 80% of your cloud infrastructure costs over a period of 24 months.

3. Optimize organic reach, rather than paying for a boost

Did you know, around $70 billion was spent on paid search ads in the US in 2021?

Instead of throwing money at ads, focus on organic marketing strategies that will reap the same benefits at no cost.

Best SEO practices to help with organic traffic include staying on top of keyword targeting: monitoring analytics of keyword performance will help you to continuously have oversight of what’s working and what can be improved, so you can keep optimizing your approach and improving your reach.

Another strategy is to optimize the landing page itself: making sure it has a load-friendly design and user experience (UX), that the content provides value to the audience, and that you have backlinks to help the user move across different pages of your site.

All of these factors will improve your search engine ranking. In addition to being a cheaper option, organic marketing has a lot of business benefits over paid ads too. When your content is optimized more strategically, it’s likely to last longer and see a prolonged flow of traffic, unlike paid ads that are only profitable when they’re live. It also helps to build a more loyal following as you’re engaging the audience at every step of the funnel.

4. Cast your net in the freelance talent pool

Most companies are introducing hiring freezes, but what if you have some talent gaps in your team that need to be filled for the business to continue developing?

Instead of hiring full-time, consider contracting freelancers or agencies to take on jobs on a project basis. Consider which positions you need on an ongoing basis and which you only need on an occasional or seasonal basis. Hiring freelancers instead of full-timers can save employers around $11.6 an hour per employee.

In addition to monetary benefits, outsourcing is a great way to access different skill sets, expertise, and strengths tailored to specific projects in a way that’s not possible otherwise.

There’s a wide pool of options to choose from all over the world and, of course, when you find a good and reliable freelancer, there’s no reason why you can’t hire them for additional projects and build up a good relationship as you would with a full-time worker.

5. Declutter your box of tools and subscriptions

In the digital age, companies are using multiple tools and apps for their business operations. Sometimes we have so many tools and subscriptions that we don’t even remember what they all are or what they’re for. Having a good clear out and canceling subscriptions for anything that’s not being used will reduce unnecessary spending.

There are a lot of tools that have similar functions, so having a browse to compare the offerings might mean that you’re able to find a better deal that suits you and saves a bit of money. Some multi-use platforms and tools additionally consolidate and integrate functions, so you get more bang for your buck rather than having a separate tool for every task/team.

6. Take advantage of funding opportunities

You might be taking all the measures you can to save money, but sometimes an extra helping hand can provide a bit more security. There are several open programs, both EU-funded and privately sponsored, to support startups during the recession and enable them to continue growing and scaling:

The European Innovation Council (EIC) for example, has a range of funding opportunities to back everything from research and mentoring to building business plans to scale and develop for market.
As mentioned earlier, Scaleway’s 100 Startups program is providing cloud funding support for 24 months.
Climate-KIC has a number of grants available specifically for startups that are accelerating the transition to zero-carbon and climate resiliency.
For low-tech SMEs wanting to develop AI techniques, StairwAI is a good option.
Eurosearch is a great place to find a range of funding opportunities, specifically tailored to different types of startups.

There’s no need to panic as the recession approaches. Instead, it’s time to get smart about spending, find the best options and discounts available, and always be on the lookout for the many funding programs and opportunities out there!

6 ways EU startups can cut spending during the recession Read More »

UK named Europe’s top tech sector with $1 trillion valuation

Growth Quarters, Insider, Next Featured / Ryan Harris / December 23, 2022

Story by

Thomas Macaulay

Writer at Neural by TNW Writer at Neural by TNW

New research values the UK tech industry at a whopping $1 trillion (€942 billion) — making it comfortably the leading ecosystem in Europe.

This sector is now worth more than double Germany’s ($467.2 billion) and three times more than France’s ($307.5 billion), according to a report by data provider Dealroom. The UK also leads the continent in overall funding, unicorns, and startup numbers.

“UK tech has remained resilient in the face of global challenges and we have ended the year as one of the world’s leading destinations for digital businesses,” said Digital Minister Paul Scully in a statement. “This is good news and reflects our pro-innovation approach to tech regulation, continuing support for start-ups, and ambition to boost people’s digital skills.”

Breeding unicorns

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Dealroom conducted the research for the Digital Economy Council, which is part of the British government’s Department for Digital, Culture, Media, and Sport (DCMS).

The study found that fast-growing UK tech companies raised a near-record £24 billion (€27.3 billion) during 2022 — more than France and Germany combined. A total of 144 unicorns and 237 futurecorns have now been created in the country — up from 116 unicorns and 204 futurecorns at the same time last year.

DCMS credited sustained upskilling, investment, and growth for the expansion of the sector, which now employs 3 million people. The department also noted the UK’s focus on standards and values. It highlighted recent proposals for AI regulation, based on core principles such as safety, transparency, and fairness. DCMS claims it’s taken a less centralized approach than that of the EU.

Fintech dominance

The UK becomes the third country to hit the $1 trillion milestone, after China and the US. A large chunk of this figure comes from British fintech, which dominates Dealroom’s list of the most valuable startups.

The Amsterdam-based organization named Worldplay, a payments software firm, as the UK’s most valuable tech company. The top five also included Revolut, FNZ, Rapyd, and Blockchain.com.

Rounding out the rankings were The Access Group, Checkout.com, Global Switch, JustEat, and ION Group. The combined valuation of the top 10 is $177.9B — almost 20% of the entire ecosystem.

Green energy also attracted growing investment — a shift that’s set to accelerate in the coming years.

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Why supporting Ukraine’s tech ecosystem is so important

Entrepreneur, Europe, Growth Quarters, Tech / Ryan Harris / December 22, 2022

War has decimated much of Ukraine’s economy, but a notable exception is the IT sector. As of November, the industry’s annual export revenues had hit a record $5.5 billion — 13% more than in the same period last year.

Since Russia invaded in February, 58% of Ukrainian tech firms have processed new orders from clients. Despite brutal assaults, martial law, and general mobilization, 85% have restored their pre-war business activities. That’s according to Lviv IT Cluster, a community of companies, universities, and local authorities.

“Ukraine’s tech industry is not only showing the ability to operate fully, but it’s demonstrating growth,” says Stepan Veselovskyi, the group’s CEO. “The export of IT services grew by 9.9% compared to last year, and brought in more than $6 billion in revenue, surpassing the 2021 figure by $542 million.”

Veselovskyi (center) at the IT Arena conference, which his organization runs. Credit: Lviv IT Cluster

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This triumph over adversity has been indispensable for Ukraine. While conflict ravages the country’s coffers, the sector provides wages for workers, taxes for the economy, and technical support for the war effort. Tech provides the military with encrypted communications, UAVs, and cyber defenses, and civilians with digital IDs, air raid alerts, and online payments.

IT will also be integral to the post-war recovery — but getting there will be tough.

It can be mutually beneficial.

A summer survey by Lviv IT Cluster found that over 50,000 IT workers had relocated since the invasion, while a further 7,000 had joined the armed forces. Those that remain now endure blackouts caused by attacks on infrastructure. Some fear that empathy from clients will dwindle as war fatigue sets in.

As the challenges mount, help from overseas becomes increasingly crucial. But the benefits of support extend far beyond altruism.

“Charity is good, but you can also work with companies. It can be mutually beneficial,” says Oleksandr Yatsenko, managing partner at BRISE Capital, a Kyiv-based investment firm.

Yatsenko (far right) also works for the Ukrainian Startup Fund and software firm Finmap. Credit: Lviv IT Cluster

Indeed, Ukraine’s tech ecosystem has a unique blend of assets. The country’s rich history in computer science laid the foundations for a thriving sector. Today, it encompasses over 200,000 IT specialists and one of the world’s biggest pools of tech talent. Stellar programming skills, a high level of English, and a timezone that overlaps well with both the US and Europe comprise a compelling package.

These attributes have made Ukraine a global hub for IT outsourcing. Now, the country wants to turn its expertise into domestic tech giants.

President Zelensky’s administration has made bold moves to bring these ambitions to reality. this future. In 2019, his government established the Ministry of Digital Transformation. By 2024, the department aims to put every public service online, expand access to high-speed Internet; teach 6 million Ukrainians digital skills, and increase tech’s share in GDP to 10%. It currently accounts for around 4.5%.

Industry is united with government.

To reach these goals, the government has championed business-friendly policies: low taxation, minimal paperwork, and massive deregulation, alongside extensive anti-corruption reforms and funding initiatives, such as the Ukrainian Startup Fund.

This program has been bolstered by collaboration between the public and private sectors. War has made both sides appreciate their interdependence.

“The world should know that industry is united with the government and they help each other,” says Ivan Babichuk, chairman of the supervisory board of Lviv IT Cluster. “And it makes [Ukraine] a protective and secure place to run a business — despite the whole security issue around the country.”

Babichuk (right) in conversation with Ukrainian official Alex Bornyakov. Credit: Lviv IT Cluster

The hardships of war have added further qualities. Ukraine’s digital infrastructure and economy has been remarkably resilient since the full-scale invasion, while the workforce has acquired a rare blend of courage and adaptability. New skills in crisis management, leadership, teamwork, and efficiency have been forged in conflict.

“Most companies have retained customers and the volume of their contracts,” says Alex Bornyakov, Ukraine’s Deputy Minister of Digital Transformation. “Ukrainian developers have shown that they are capable of doing their job well even under extreme conditions. For the whole world, this is an indicator that Ukraine is a reliable partner and an attractive investment destination.”

We’ve become more active — and stronger.

Some tech businesses have thrived since the invasion. Take Mosqitter, which won the prestigious IT Arena Startup Competition in 2021. While the conflict escalated, the company grew its team and developed a new product line.

“Difficulties bring you opportunities and possibilities for growth,” says Olga Diachuk, the company’s COO. “It shows you who you really are, what you are made of, and how smart you are.”

Digital businesses also typically require fewer physical resources — which makes their revenues increasingly important to Ukraine. Brick-and-mortar stores, for instance, are now more likely to close due to safety concerns than e-commerce sites.

Nonetheless, tech firms face immense challenges of their own. Investment from overseas will be crucial a component of their future fortunes.

“It’s very important to keep the support of the local tech ecosystem from outside as Western-based funds do,” says Joachim Laqueur, General Partner at VC firm Acrobator Ventures.

“Technology is such a long-term beneficial force. Now we’re seeing the first wave of successful companies breaking the ground. Even during the time of war, these people, these companies are able to address problems that are not restricted by borders.”

Laquer (second from right) was on the jury for the 2022 IT Arena Startup Competition, which was won by WRAP, an app that automates video production flows. Credit: Lviv IT Cluster

People who already invest in Ukraine note that war is fostering a unique set of skills. For example, thousands of volunteer hackers have joined the IT army, an organization that’s defending Ukraine against Russia’s vaunted hacker groups.

Members of the group have attained unparalleled experience. Mykhailo Fedorov, the country’s Minister of Digital Transformation, describes the conflict they’ve withstood as “the first world cyber war.” The volunteers now want to share their expertise with international allies.

“Ukrainian tech companies are strengthening their cyber defense capabilities, and can help other countries better understand the nature of modern cyberattacks,” says Veselovskyi, the Lviv IT Cluster CEO.

The First World Cyber War. The first IT Army in the world. 270K of angry IT-warriors of cyber frontline. Rutube shutdown. AI tech & identification of war criminals. And many more cases to disclose after the victory. You are free to join, by the way. pic.twitter.com/3PDP075nU5

— Mykhailo Fedorov (@FedorovMykhailo) May 26, 2022

Despite these strengths, the potential of Ukraine’s tech sector will only be fulfilled through support from the international community. For Veselovskyi, the simplest way they can help is by cutting all ties with Russia.

“The next step is motivating your local governments to support Ukraine and get involved with Ukraine’s fundraising initiatives,” he says. “The future safety and economic prosperity of Europe depend on the victory of Ukraine on the battlefield. You can start working with Ukrainian companies already today through our B2B platform Lviv Tech.”

To forecast the sector’s future, Veselovskyi’s team surveyed over 5,000 tech industry representatives. In the most positive scenario, which presupposes European integration and liberalization of the economy, 78% of the respondents would remain in Ukraine. A further 12% would try to move abroad, while another 10% are yet to decide.

The best way to help Ukraine is to invest in Ukraine.

This outcome can provide the foundations for a flourishing post-war industry. To build this, continued support from Europe will be essential. Government officials have sought to spread this message at IT events around the world.

“We tell them one specific thing: the best way to help Ukraine is to invest in Ukraine,” says Bornyakov, the Deputy Minister of Digital Transformation. “Work with Ukrainian companies, give money to Ukrainian startups, and if you are able to hire Ukrainian freelancers, do it.”

The stakes are extremely high. IT remains the only industry in Ukraine that still shows growth. If it shrinks, the whole country will suffer. If it expands, however, the sector can help Ukraine not only survive, but flourish.

Why supporting Ukraine’s tech ecosystem is so important Read More »

Your laggy WordPress site is annoying customers — here’s how to speed it up

Growth Quarters, Insider / Mike M. / December 12, 2022

In an age when consumers expect products and services on demand, there are very few things more annoying than a sluggish website. And for businesses that fail to keep their website at optimal performance, there’s a big risk: it kills the customer experience. Studies show that just two seconds of additional loading time can increase bounce rates by 103%, meanwhile 100 milliseconds of load time can cause a 7% drop in conversion. Site speed is also a factor in Google rankings on desktop and mobile. Poor performance can reduce your site’s visibility on search engines, killing your traffic. But, you’re…

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Dependence on cloud’s ‘big three’ is hurting EU startup growth — it’s time for a new approach

business, Europe, Growth Quarters / Ryan Harris / December 8, 2022

In July, Sweden’s payments firm Klarna marked a drop in valuation at $6.7 billion, down from $46 billion in June 2021. The buy-now-pay-later firm — which was once seen as Europe’s most valuable private tech company — recorded its first ever large-scale layoffs in May as it shed 10% of its staff. Similarly, Berlin’s once fast-growing rapid grocery delivery startup Gorillas recently laid off 300 employees. Between the global economic downturn and poor public market performance, Europe’s world of tech is currently facing a major decline in venture funding, sliding to its lowest point in nearly two years. Investments in…

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Dependence on cloud’s ‘big three’ is hurting EU startup growth — it’s time for a new approach Read More »

3 ways data center design will change in the future

Design, Design & Dev, Growth Quarters / Ryan Harris / December 5, 2022

The evolution of data centers has been continuous since their advent, with the requirements of each technological era defining each phase of transformation. As the world abruptly shifted to digital during the COVID pandemic, we’re now producing more data than ever before. Naturally, the demand to manage, store, and process that data has also increased exponentially. Along with this heightened demand, comes a new set of challenges and things to consider when building the data centers of the future. How can we satisfy our growing data needs, without compromising the environment? How can we tackle the growing cybersecurity threat and…

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