Going back to (events and event tech) basics.
I spent the last month trying to figure out ways to understand what's happening with events and event tech growth and valuations, particularly how tech could continue (or not) to influence our industry.
I talked with many smart event and tech owners, and investors and learned from their views and feedback.
It's an extraordinary time, and there are different things that I would like to analyze. Let me share my main research topics - be sure to let me know if you think I'm missing any critical issues.
First of all, some good news. Face-to-face events are coming back fast and furious, generating positive feelings for event owners and investors in the category. The fact that face-to-face events are back doesn't mean that event tech is no longer relevant (I wrote about this issue in this blog post.) But, event tech companies are having a hard time for different reasons. Let's take a look at some of these reasons.
We've seen various adjustments in every tech vertical (big tech and startups), and funding for tech startups has begun to slow down. We are also concerned about moving into a recession scenario. We have a perfect storm from a macroeconomic and political perspective while inflation in Europe and the US continues to accelerate.
Insiders' adjustments in some pretty big private tech companies like Klarna, (valued at $45.6B in June 2021, the "buy now, pay later" company just raised $800M at a $6.7B valuation), Instacart, and Stripe are signaling a private market adjustment in later stage tech companies. In general, tech companies (well funded or not) are adjusting their investments and preparing their financial plans to be ready for a volatile time, at least for the next 12-24 months.
Of course, some of these reasons will also affect event tech companies. Some friends asked me about my views on event tech adjustments from last month (Hopin, Bizzabo, Hubilo, and many others). To clarify things, we should try to put certain factors into context and comprehend the broader tech funding adjustments first (as previously mentioned, adjustments are happening across every tech category). Once we understand the bigger picture, we can focus on the niche and small category representing "event tech."
In summary, adjustments will continue to occur across tech companies, and event tech is not isolated anymore.
Recommended by LinkedIn
It's no secret that Covid inflated event tech valuations, and I've been saying for a while now that event tech valuations adjustments are inevitable. And we are seeing similar situations in other tech verticals like EdTech or remote work tech, among others.
Now, the big question here, and that's why the title of this post is about "going back to basics," and how event tech and event organizers will continue to collaborate in the future to make events in every single category (face-to-face, hybrid and virtual) more effective. I honestly don't care about the whole valuation mess in the tech world. The market will dictate valuations adjustments short term, and successful startups will be able to raise valuations again once they validate KPI's in front of investors. Mediocre startups will probably be acquired or disappear, and that's the game's name in the early-stage tech space.
But, I do care about going "back to event basics" and ensuring that we continue to embrace tech to improve ROI for all events stakeholders as an industry. Now is the time when strong event tech teams will be capturing market share while the rest either struggle or disappear. Now is also when strong event organizers will continue investing in tech and innovating instead of returning to the pre-Covid model.
Going back to event basics starting today includes thinking about how tech will add value and not believing we can forget that event sponsors and visitors will be demanding a more effective investment of their time and money across every single event activation.
There is no way to go back to "event basics" without understanding that we will continue to live a different reality in the post-Covid events world.
If we want to connect the right buyers and sellers (B2B events) or fans and creators/celebrities (B2C events) and maximize their time, investments, and experiences in future events, tech engagement for all event stakeholders is inevitable.
I'm probably one of those "optimistic entrepreneurs" who always see the glass half full. Still, I believe that we will continue to see a thriving event industry and a growing and booming event tech industry in parallel. It's not one or the other. Both these industries will continue collaborating and building added value for all event stakeholders. Do you agree? As always curious to hear your thoughts.
Director | #UFI #NGL Grant Recipient | Ex-Koelnmesse | Fostering (Data-Driven) Communities and Marketplaces (venues, trade fair and events)
2yJust to add: almost all industries served by event organisers have experienced event tech -- especially in the last two years -- yet the difference of opinion by end users is astounding. This reflects respective industry's digital tolerance but also raises some questions on the product market fit of event tech in some countries. This should be studied more in depth while continuing to create more awareness of digital solutions. Thanks.
Loved reading this thread. Also factor in this: Live events are back but attendance is still approximately 30% down and costs for exhibitors and shows are rising. Air travel, hospitality, supply chain... you know the whole ecosystem is now more expensive. That means it's more important than ever to reach people where they are. Like retail, events need an omnichannel strategy. Omnichannel I think is different from a hybrid because it doesn't mean you've got to have a digital and virtual event on the same 3 days in September. The mindset needs to change to meet your audience where they are. Oh yeah.. did I say that we have to get better at the metrics showing the ROI on virtual also?
Experienced Entrepreneur, Tech Executive & Board Member
2yI enjoyed reading your article Marco. Organizers and attendees are excited to return to in-person events, so it’s obvious why virtual event platforms are hurting … and it’s not the threat of a recession. Live event tech companies like Eventbase are seeing unprecedented growth. We’ve never been busier.
Advisor to global exhibitions industry
2yAbsolutely agree Marco. While the virtual event shooting star may well have fizzled and the enthusiasm for a return to in-person events is exciting, budgets remain under pressure and harder questions than ever are being asked about the quality of participants. Only a proper integration of technology and data flows with the physical event can answer those questions. The fact that the two largest exhibition companies in the world are now led by people who have come out of data intelligence businesses tells us a great deal about where the industry is heading. These are challenging but very interesting times and I am convinced that decisions and investments already being made today will have a very big influence on the shape of the events business for a long time to come.
International Industry Ambassador at Freeman Company
2yMaybe I’m a glass-half-full kinda person too…I believe both events & tech will grow in parallel…Great article Marco!