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The Pandemic's Lesson for Employers

The Pandemic's Lesson for Employers
April 28, 2022

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I’ve seen my fair share of boom and bust cycles as a millennial. I watched Gen X’ers ahead of me knocked sideways by the bursting of the dot-com bubble in 2001, and I graduated into The Great Recession of 2008. So when the pandemic hit and the world stopped, the thought for many of us was, “here we go again.” But this calamity was different. The playbook for the government, employers, and workers had to be completely reworked.

A tight labor market has many employers reconsidering their heavy-handed layoffs at the start of the pandemic. The recovery created a quick turnaround where skeleton teams couldn’t keep up with demand. With unemployment at 3.6% and 11 million open jobs (up 57% from pre-pandemic), employers are struggling to fill roles. CSX Corp.'s CEO says, in the future, the company will consider furloughs and part-time work with benefits instead of all-out firing. In terms of who will be expendable, the company's strategy will be to fire those employees with more easily trainable skills, like stocking shelves.

Meanwhile, pandemic darlings who went on hiring sprees during the pandemic have been announcing layoffs under the current market correction. Peloton, Zoom, and most recently, Robinhood, have all executed major layoffs.

Still, companies are attracting top talent with shiny salaries and missions. Ramp has quadrupled its workforce in the last year to keep up with growth for the credit card and expense management offering. Veho Tech plans to add 5x employees for the company's last-mile delivery startup. In some cases, wage-pressure is causing discord between existing employees and new hires who’ve been lured with higher salaries.

The Limits to Tech's Reach
As many as 4 in 10 people are not on the Internet. Big Tech is trying to change that dynamic.
[NY Times]
The Fountain of Youth
Billionaires are pumping money into anti-aging technology.
[Fast Company]

Since last week, PrivCo has added:
905 Companies | 309 Funding Activities | 149 M&A Deals

Funding & Deal Highlights:

NovoPayment raises $19MM from Fuel Venture 

Fintech • Round A • Miami, FL

Carlsmed raises $30MM from B Capital Group

Meditech • Round B • Carlsbad, CA

Sionna Therapeutics raises $111M from OrbiMed

Biotechnology • Round B • Natick, MA

Kinara Capital raises $50MM from Nuveen

Micro Lending • Round E • Bangalore, India

Nue Life Health raises $23MM from Obvious Ventures

Telemedicine • Round A • Miami Beach, FL

A SHOC raises $29MM from Michael Strahan

Beverages • Round B • Newport Beach, CA

FundGuard raises $40MM from Citigroup

Fintech • Round B • New York, NY 

SEON raises $94MM from IVP

Fraud Protection • Round B • Budapest, Hungary

Enso raises $16.5MM from SignalFire

Software Development • Equity • San Francisco, CA

Playbook raises $18MM from Bain

Digital Media • Round A • San Francisco, CA 

Asahi Kasei announces acquisition of Bionova

Biotechnology • Acquisition • Fremont, CA 

THREAD acquires CureClick

Clinical Trials • Acquisition • Costa Mesa, CA

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