Top Tech Companies That Started During Economic Downturn

Odd times come with strange measures. Governments around the world imposing lockdowns in an attempt to fight pandemics has a collateral consequence. Economic disaster. In this time of uncertainty, though, some businesses thrive.

How do they do it?

Perhaps these companies just had the fortune to suddenly be on demand. Think of niches like any kind delivery services, entertainment streaming on the internet or online casino websites that have benefits for more people staying home without much to do.

Others had smart managers who saw an opportunity in the change. For instance, many restaurants have turned to takeaway.

Neighbourhood shops went online to reach their customers closed inside their homes.

Coaches and consultants moved their appointments from face-to-face to virtual. Online services thrive too; just think of Netflix and the like.

The concept is far from new. Businesses have taken advantage of economic meltdowns since the dawns of time.

So, if you have a brilliant idea, don’t let the recession put you off. Just follow the example of the tech companies below, all of which started during economic downturns.

IBM

IBM was launched during the so-called Panic, the economic depression of 1910-1911, under the name Computing-Tabulating-Record Company.

They originally manufactured all kinds of commercial and industrial-scale machines, ranging from meat slicers to recorders, punched cards, and tabulators. In 1924, the company changed its name into International Business Machines (IBM), as they started to expand from the USA to Europe and Asia.

Not only did IBM thrive during the economic downturn, but it actually became the leader in technology, supporting the digital revolution and making billions along the way.

Microsoft

In 1975, as the USA was just coming out of the Oil Crisis Recession, Bill Gates and Paul Allen had a brilliant idea.

That is starting to sell operating software to the nascent home computer market. In only a few years, their phenomenal products, including MS-DOS, Windows, and Microsoft Office, became famous around the world.

Not only Microsoft’s founders became incredibly rich, but the company also brags about four billionaires and thousands of millionaires among its former and current employees.

Apple

Another giant and Microsoft’s main competitor, Apple, started in the same year as Microsoft, but it only became the Apple we know today in 2001, in the middle of the dot-com bubble burst and the wake of 9/11.

Economic uncertainty didn’t stop Steve Jobs to return to Apple and launch the iconic iPod. The gadget, together with its iTunes, became instant hits and paved the way for the iPhone and iPad.

More than a tech company, Apple today is a cult with faithful worshipers diligently waiting for the launch of any new product.

Adobe

Bragging with a range of software for web designers, graphic designers, and other creative people, Adobe was launched right after the end of the 1980s recession, in December 1982. It originally developed and sold PostScript page description language for corporations, including Apple Computer.

However, it didn’t take long until Adobe entered the consumer software market with Illustrator, a vector-based drawing programs initially developed for Apple Macintosh. Illustrator helped popularise the company, which entered the NASDAQ in August 1986 and reached its first 1$ billion in revenue in 1999.

Since then, Adobe introduced multiple software programmes that completely revolutionised our lives, including the Portable Document Format (PDF) and the popular Flash.

Netflix

The popular video streaming service was founded in 1997, so technically not during an economic meltdown.

However, Netflix, as we know it today, has resurrected from its ashes in a full dot-com bubble crisis, after turning down Blockbuster’s offer to buy the company for $50 million.

Initially selling DVDs to subscribers, the company took advantage of the 2000s trend of downloading films off the internet, becoming a pioneer in streaming on-demand consumer video. Needless to say, Netflix has thrived ever since.

Zendesk

Right in the middle of the great economic recession of 2008, Zendesk’s founders realised that existing IT ticketing software was incredibly complex and expensive.

So, they decided to project a free-to-test, cheap-to-buy, cloud-based ticketing platform.

Taking advantage of companies deploying their help desk systems from on-premise to cloud, Zendesk partnered with companies such as Twitter, Scribd, and Eventbride.

Today, it is the leader of the cloud help desk systems world.

Mailchimp

The popular marketing automation platform and email marketing service was launched in 2001. The company didn’t enjoy excessive success during its first years, as it was geared towards large corporate clients.

When the Great Recession hit, the founders reinvented the service and added a freemium option in 2009. Within a mere year, Mailchimp’s user pool ballooned from 85,000 to 450,000 users.

Business has skyrocketed since then, and in 2019, the company declared revenue of $700 million.

Born in times of crisis and reinvented during one of the most significant economic recessions of all time, Mailchimp takes advantage of the 2020 crisis too.

The company has acquired London-based media and magazine company Courier in March 2020 with the purpose of expanding internationally.

Airbnb

When they decided to rent out an air mattress in their San Francisco living room in 2007, Airbnb’s founders Joe Gebbia and Brian Chesky had no idea that the Great Recession that would happen in the following year would transform their idea into a profitable business.

When travellers started to search for cheap alternatives to the expensive hotels, the two turned their concept into an easy-to-use platform where anyone could advertise their spare bed, room, or whole accommodation.

Needless to say that Airbnb soon became the go-to online booking service for travellers around the world, while the company cashed billions along the way.

Wrapping It All Up

Economic recessions are undoubtedly scary, but we never know what the future holds for us. If you have an idea and wait for the right moment to launch it, know that there might never be a right moment.

Seize the opportunity now. Think of how your business could address the current needs and simply go for it.

After all, history shows us that many of the biggest companies in the world started and thrived during an economic downturn.