In the Coronavirus lockdown, we see trends that will establish the next cycle of startup innovation. While already underway, there’s an accelerating shift to digital. Startups in this area will find investor interest if they can provide the following: Ability to work online, from anywhere Evergreen products that are always in demand Efficient delivery of products and services both online and offline, such as the internet or delivery to the customer’s doorstep Some examples of startups best suited to the shift include restaurants that can move from in-house dining to curbside delivery, businesses ready to sell online rather than in the store, and local gyms streaming live classes online. These trends were already underway; the Coronavirus is only accelerating that progress.

After the COVID-19 pandemic of 2020 is over, investors will look to see if you have made your business “COVID-proof”. Here are a few steps you can take to do just that: Ensure that your startup can continue day-to-day operations by working remotely, even when everyone is in lockdown in their own homes. Setup remote work tools such as Google Drive, Asana, Trello, and other systems. Update your cybersecurity measures as a remote workforce will bring new challenges. Create backup and redundancy plans to cover for those who fall ill or must step out to take care of others. Choose partners and suppliers who have COVID-proof businesses.  Secure the supply chain for your operations, as well as for product/service delivery. Most importantly, pursue customers who are also COVID-proof and whose operations will continue in the case of a lockdown. These companies will be able to: Run some portion of their business online Continue operating using existing workers in remote locations To deliver and support a product/service without the support of large numbers of people Have a flexible workforce and can shift duties from one team member to another seamlessly

The Coronavirus economy is accelerating changes already underway. Content and engagement is moving online. This impacts healthcare and education in particular, as well as general business. As a startup, you need to recognize this acceleration and move your business to be a part of it. Look for capturing your content and making it available online. Video, blogs, and other content can be digitized. You may need to take on consulting work in the short-term to help pay for this process. Customer engagement also needs to move online. If not all of your business, then some of it. While face-to-face interaction is important and in some business interactions critical, you’ll need to figure out how to use webinars, video conferencing, and other tools to close the gap. As you shift your business online, you’ll need to conserve cash and reduce staff.

The Coronavirus pandemic impacts many parts of the economy, including work. We’ll see changes in the following ways: Increased usage of remote-work software tools. Video conferencing, shared drives, Slack, and other tools make virtual work efficient and will grow in adoption. Remote work will become the norm rather than the exception. No one will miss the commute to work. Increasing use of virtual workers. With work moving online and companies moving to distributed models, the pool of available workers will expand. Employers will look for new tools to manage online employee productivity. With employees working remotely, new opportunities will arise for supporting workers with the delivery of physical goods. Workers will need to retrofit their home office to accommodate the new workspace with the associated teleconferencing calls. Corporate offices will be re-purposed for new uses. For example, office buildings could be reconfigured to host company employees once a quarter for all hands-on employee meetings and shared among several companies. As a startup, you may want to take note of these trends and plan your business strategy accordingly.

While the Coronavirus brings a lock-down in the movement of people, it doesn’t point to an altered future, but rather an accelerated one. The Coronavirus will accelerate changes in the economy that are underway. We were already shifting the supply chain to include home delivery of groceries and every day items. The Coronavirus lock down only speeds the shift. Amazon and other suppliers are hiring thousands of workers to meet the acceleration. Education was already moving online and will only do so more now that schools have cancelled classes and sent students home to log onto their computers. Businesses were already moving to video conferencing and remote worker organizations.  The coronavirus ‘stay at home’ mandates across the globe encourage more users of Zoom and remote worker software. Healthcare was already moving to “telehealth”-based care.  The overload of coronavirus patients on the healthcare system will increase usage of that model.  The coronavirus is moving our economy to the next generation and while it may be painful in the short run, it’s inevitable in the long run. As a startup, think about how your company can be a part of the next economy. It’s here.

At the Baylor Angel Network Analyst dinner, the student analysts asked the Angel members how they managed large, complex data sets. In my response, I explained that the solution to the large complex data set problem is to build models. In the startup world, there are many types of startups, but if you categorize them by type and stage you can create a manageable number.  This allows you to contrast and compare new businesses against the models. Each model has certain characteristics, dynamics, and risks. For example, a B2B enterprise software model has a CAC:LTV ratio which measures the strength of the business model. A consumer product goods company has a category growth rate and a gross margin which determines how much funding you will need to grow it. By organizing startups into a discrete number of models, you can manage large volumes of data. Another question focused on how to develop new innovations. In response, I described how applying convergence to the models can generate new innovations.  By merging two models together, you can create a third model that is new and unique. For instance, if you take B2B SaaS and merge it with the music industry, you’ll create a streaming category exemplified by startups such as Spotify. It is important to note that not all convergences make sense and lead to productive innovation. A key factor in achieving productive innovation is that it must solve a real problem. This dovetailed with another topic of discussion—solving a real problem.  It’s important to work on solving real problems and not “nice to haves.” It takes time and funding to bring innovation to the market, and that effort should be directed toward solving an actual need. Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies