Tech Firms Feeling the Pandemic Effect
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowTechnology companies throughout the state are among the many businesses feeling the economic pinch from the COVID-19 pandemic. Mike Langellier, chief executive officer of TechPoint, says tech companies are experiencing the effects in different ways, largely depending on the amount of capital they have raised. Langellier notes that tech companies, historically, don’t have the conventional banking relationships or lines of credit that businesses in other sectors have.
In an interview with Inside INdiana Business, Langellier said how hard companies are being hit also depends on the industries they serve.
“Companies that were serving an industry that were significantly impacted – think events and hospitality, think travel – those companies are naturally going to get hit hard,” said Langellier.
The head of the state’s technology initiative says the amount of capital a tech company has in the bank is a major determining factor in its strength during a crisis such as the pandemic.
“If they had recently closed a round of venture capital or established a line of credit that they can draw upon, those companies are going to have some buffer to help them through this time. The companies that are challenges are companies that maybe were approaching a fund raise or didn’t have established banking relationships to be able to lean on. (For) those companies, this is a hard time to weather a storm like this.”
Langellier says it’s not just tech companies that are affected.
“You also have your tech-enabled companies that range from hospital systems to manufacturing companies and ag companies, a wide range of companies across industries that are also significantly impacted. Even if their business has picked up or if they’re still very much working on the front lines as hospitals are, often times it’s significantly impacted their revenue and profit numbers.”
The state’s tech sector was supposed to honor the “Best in Tech” with the TechPoint Mira Awards last month. However, the tech accelerator announced this week the awards ceremony will be held virtually for the general public on June 18.
Langellier said how hard companies are being hit also depends on the industries they serve.