COVID-19 tech growth opportunities: comparing views from eight board chairs
On the evening of Monday 22nd June 2020, Silverpeak co-hosted a virtual roundtable with Spectrum, the technology executive search firm. The group brought together eight board chairs of privately held technology growth companies — each serving across multiple boards. Each guest received a hamper of wine, cheese and pâté in advance of the session. Over 90 minutes, the group compared views on the COVID-19 challenges and opportunities facing technology growth businesses.
Guests included: Adam Hale; Dale Murray CBE; David Gilmour; James Bilefield; Lisa Stone; Margaret Rice-Jones; Nigel Clifford and Vin Murria OBE.
Silverpeak’s market observations since March 2020
Pietro Strada opened the discussion with Silverpeak’s key observations since March 2020. Broadly, technology and pharmaceutical businesses emerged as market winners. In particular, remote working and collaboration solutions attract the strongest interest. The leading one or two players in each subsegment have a clear opportunity to extend their advantage.
However, public and private markets are responding differently. Private equity does not believe that recent equity market pricing reflects underlying value. Management teams remain cautious. Private equity firms hold capital ready to deploy, but transactions are taking longer. As a result, valuations are lower, and most companies are raising approximately two years of cash to protect against further uncertainty.
Spectrum’s observations on leadership and culture
Daniel Osmer then shared Spectrum’s observations from the same period. Most companies locked down well ahead of UK government advice. Many now expect the way they work to have changed permanently.
Management teams leaned heavily on their boards for guidance, with chairs taking on a more active advisory role than usual. Views on virtual board meetings were divided. Some chairs value the format and its efficiency. Others find the loss of face-to-face interaction — and the difficulty in reading body language — a real challenge.
Employee productivity increased in many cases, though how long this continues remains uncertain. Clients remain cautious about conducting senior executive hiring entirely online. Most, however, expect a greater proportion of the selection process to move online in future. Assessing company culture through virtual means alone also presents genuine challenges for candidates.
Key themes from the guest discussion
Eight consistent themes emerged from the broader conversation.
Company performance varied significantly — by subsector and by management team response. “The speed, scale and style of this impact has been different to other recessions,” said one guest. Planning proved difficult when teams had little control over demand. Even companies with ARR contracts felt the impact of customer cash shortages. For some, the absence of on-site contact — and simply having someone to talk to — added to the pressure.
Purpose proved its value. “Executives have shone where they have remembered their company’s purpose,” one chair noted. “Those that forgot their purpose created friction.” Companies that invested in purpose before the crisis maintained high engagement levels. The challenge now, as one guest put it, is “how do we keep this going, and build on it in a more disparate world.”
Leadership defined outcomes. “There is a new level of accountability now with teams,” said one chair. Many management teams showed exceptional tenacity. Chairs used the period to reassess executive teams, accelerate succession planning and focus on talent.
Partnerships came into sharp focus. “You know who your real partners are at a time like this,” said one guest. The crisis prompted a broad reassessment of business ecosystems. Several chairs stressed the importance of understanding partners deeply and driving quality up.
Online meetings largely worked well. “Everyone attends because the session is online, which is levelling,” noted one chair. Most participants found online meetings time-efficient. Around 80 per cent delivered what they needed to. Future in-person meetings will need to earn their place: is it habit, or genuine value? Interactive and brainstorming sessions, however, remain difficult to replicate online.
The human dimension became more visible. Guests noted a sharper focus on genuine customer and partner relationships. “Seeing people as human beings and not as transactional agents” resonated strongly. Several chairs highlighted the positive effect on employee engagement where companies contributed meaningfully to wider society.
Employee mental health and the Black Lives Matter movement took centre stage. The movement had a profound effect on organisations and accelerated conversations about diversity and inclusion. Younger employees found the period particularly tough: “coaching opportunities in a virtual world are very limited.” Inexperienced chief executives also felt the strain.
Innovation accelerated. “Lots of innovation in a small space of time — will deliver a positive medium-term impact,” said one guest. Business myths broke down, ways of working improved, and most guests agreed that organisations will not return to where they were before March 2020. “Elephants can dance when under pressure and have no choice” captured the spirit of the discussion well.
Closing remarks
Paddy MccGwire closed the formal session. Several guests stayed online for an informal discussion focused on UK government support — in particular, the furlough scheme and The Future Fund.
To discuss these findings, join a future event, or to explore how Silverpeak can support your business, please contact Paddy MccGwire or Pietro Strada. You can also explore our approach to technology investment banking or read our research on urban mobility and tech sector trends.