The CEOs of Europe's biggest startups say COVID-19 will speed up the adoption of tech across everything from healthcare to banking

Poppy Gustafsson

The months-long COVID-19 pandemic has forced company leaders to take huge decisions for their firms at speed.
The founders and CEOs of Europe's biggest tech unicorns, such as Darktrace, Graphcore, and Babylon Health, are used to disruption but nothing on this scale.
We asked 9 European tech CEOs how they are coping, and how they see the world changing forever after the pandemic.
All were optimistic that technology would play a greater role in the way we live.
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The coronavirus pandemic poses serious ongoing challenges to businesses, as international lockdowns put a freeze on economic activity.

The CEOs of Europe's fastest-growing startups are, no doubt, used to rapid problem-solving — but nothing on this scale.

A pressing issue is that startups tend to initially prioritize growth over profitability, meaning even some of the best and brightest won't have sufficient cash reserves to cope with months of reduced business. Others might suddenly have to cater for a huge spike in some parts of their business — such as telemedicine or online delivery services — while also seeing other parts of their business suffer.

Business Insider asked nine CEOs how the pandemic was affecting their business, how it might alter their industry, and how the pandemic might permanently affect the world. Here's what they had to say:

Poppy Gustafsson, CEO of security firm Darktrace

As an organization Darktrace is now not just evolving with the world around us, but ahead of it.

As organisations have turned on a dime to adopt new remote working practices, our R&D team have worked to make our AI available completely virtually – without employees having to leave their homes, helping them protect critical enterprise systems from cyber-threats.

Resilience comes through innovation - a learning that permeates our entire business.

The coronavirus pandemic has provided a real-world test of how robust many companies' cyber defenses are. What's clear is that the old way of doing security – creating rules for what employees are allowed to do and trying to predict what might go wrong based on history – is useless in the face of rapidly changing, unprecedented circumstances.

COVID-19 could change the world of work for good.

Overnight, businesses have completely transformed themselves to operate remotely, with technology being the single most significant factor in facilitating this change. From being able to access work files remotely and connect with colleagues via virtual conferencing platforms, to having an app on your phone that enables you to have lunch delivered to your door, it has never been more apparent that technology is the lifeblood on which successful businesses depend.

Protecting this foundation has never been more important – as a security company, we are proud to safeguard the very systems on which so many of us rely.

We are clearly in an unpredictable world. The key to our success as a business has been technology that is constantly evolving and responding at machine speed to changes in the digital landscape, and these are technology traits we must all build into our businesses. Adaptability and agility will allow businesses to ride the waves of these uncertain times.

Ali Parsa, CEO of health startup Babylon Health

COVID-19 is going to provide one of those defining points in history – where much will be referred to as before and after.

Every business, including our own, is considering ways of doing things that we thought weren't possible even a month or two ago. With everyone's focus laser-tight, and forecasts uncertain, all businesses, had to work out how to rapidly re-prioritize and focus on what our clients need at this moment of crisis, and deliver them in days what originally could us months.

Hopefully this will be the moment that healthcare systems decide that innovative technologies can be applied to assist with significant challenges such as management of chronic conditions, from diabetes to mental health.

If healthcare systems can learn from this to proactively think of new ways of harnessing technology to deliver care, it will reduce the pressure on clinicians so they can operate at the top of their licenses and divert their attention to where it is most needed.

Healthcare systems have been struggling with resources and inefficiency since long before this pandemic. Technological advancements will result in meaningful change, making healthcare more affordable and accessible to patients everywhere to include the billions who were previously being left behind.

If it works for healthcare, it can work for many other sectors in the economy.

By adopting innovation and technology we can better use the resources we already have to serve more people.

The positive impacts of this are plentiful; we'll be doing less harm to the environment; we'll have more time to spend with our friends and family; we'll be more efficient in the ways we do things. Overall, we can be kinder to our people and our environment without being wasteful with our resources.

These are dark and difficult times, but we must learn from these challenges where we can. People all around the world have paid far too heavy a price for us to go back to the way it was before. It is our obligation to those that suffered not to return to our old ways, but to reshape for the better all that we do.

Markus Villig, CEO of ride-hailing startup Bolt

There are very few industries that have not been hit by the coronavirus. Mobility has been among the most affected areas, with many countries rightly restricting movement.

The ride-hailing industry has been reset with rides dropping as much as 70% or even more. However, we expect the long-term trends that drive on-demand mobility – such as people opting out of car ownership and looking for greener ways to move or cities taking steps to battle congestion – to remain unchanged.

In an economic crisis, companies with low fixed costs and an efficiency mindset have an advantage. This is why businesses that have so far been operating in a highly leveraged growth-at-all-costs environment have been hit the hardest. For example, we've seen a lot of electric scooter companies pull out of their markets in Europe and lay off a large number of employees.

Luckily, we've never had the problem of having too much money, nor have we been able to enjoy a lack of competition. This has contributed to us being extremely frugal and spared us now from some of the painful decisions that other companies have had to make.

Of course, it hasn't been completely painless for us. We've had to scrap product plans, cut salaries and shuffle people between departments to cover for the decline in ride-hailing and the sudden increase in the demand for delivery services.

We estimate that the on-demand delivery industry has been accelerated by two to three years.

Prior to the crisis, Bolt Food was operating in four markets and now we expect to be live in 15 countries by the end of May.

We also saw waiting times at local online grocery chains spike during the crisis, so we launched grocery delivery on Bolt Food in a matter of days. In some markets, we see grocery delivery now making up to 20% of total volume. Additionally, we launched Bolt Business Delivery to aid vendors in need of a distribution partner and offer same-day delivery, which we expect to stay in demand after the crisis as well.

Nigel Toon, CEO of AI chip firm Graphcore

Graphcore is very fortunate that the fundamental need for what we produce is not going away. Rapid progress in artificial intelligence continues and Graphcore's IPU is helping to accelerate that revolution. For the sorts of companies and institutions that are buying our technology, is a long-term investment, but also a priority investment.

In terms of the way that we operate as a company – we've always been geared-up for remote working an online conferencing.

We have teams in China, Norway, the UK, US and other locations. But like everyone else, we're acquiring new skills too, such as running online seminars and delivering conference talks virtually instead of in-person. It has been a great way of reaching new audiences and I'd hope some element of that is retained.

If anything, this situation underscores the potential of artificial intelligence and the need to progress it further, faster. Around the world we've seen experts and politicians looking for answers within vast swathes of data – from how a virus progresses in a population to the global logistics of essential medical supplies, not to mention the search for an effective vaccination.

Those sorts of things are the core competencies of AI – seeing patterns and finding answers in datasets that humans might not.

There's a lot of COVID-19-related research going on at the moment and I expect that we'll start seeing some of the outputs of that soon. For people who work in the field of AI is it is a powerful reminder of technology's capacity to improve people's lives.

How do you think COVID-19 will change the world?

It's very early to tell. However, it may make people think differently about other existential threats – primarily climate change.

Even among those who accept that the phenomenon is real, there are a variety of reasons or excuses commonly given for not taking more urgent action; the impact is being overstated by doom-mongers, we can act later when the situation becomes more pressing, changing out behaviour gradually lessens the economic shock.

If we've learned nothing else, it is that the voice of science needs to be listened to, warning should be heeded, and early action could save us untold pain.

Maximilian Bittner, CEO of fashion marketplace Vestiaire Collective

This unprecedented period of disruption will drive deep fundamental changes in the way we all behave. These will far outlast the crisis.

Businesses need to be highly agile and reactive to the situation as it evolves. One of my key takeaways is that the rules you operate by one day may not be the most effective the next. We've always operated a dynamic business, but the crisis has really accelerated that. It will be very important for us to stay close to our customer needs, to ensure we can support them in the way we operate, and also by continuing to drive a deeper level of engagement between our members.

The fashion industry and retail landscape were already in a deep state of flux before the crisis.

Fundamental shifts in consumer behaviour driven by Instagram, the "Uberization" of ownership and the increased importance of sustainability impacted consumer behaviour, and the way people shopped, the crisis will only further accelerate these trends.

As a whole, I think there will be an increased focus on community. People want to feel connected. There will also be a further increase in our reliance on digital and e-commerce, as our devices have become even more important in our ability to stay connected.

Finally, the crisis has forced us all to reassess what will really drive value for ourselves and our communities.

Husayn Kassai, CEO of ID verification company Onfido

When we started eight years ago, we saw the world moving online – both in business and as consumers – and we recognised the need to find an easy and secure way to help users verify are who they claim to be in a remote environment.

At a time when physical access is particularly challenging given the COVID-19 outbreak and lockdowns, we have seen a surge in demand for quick and secure digital access, particularly in online healthcare and remittance and payments.

The growth we're seeing is across both existing use cases, such as verifying a user who wants to open a current or savings bank account, as well as new identity-based use cases, for example, verifying volunteer workers to help with relief efforts.

The need for quick and secure digital access has never been greater. We expect to see a continued surge in the industry as many large institutes bring forward their long-term digitization plans to enable access and continuation of service online. This is to support their business during this lockdown and in anticipation of any future requirements for self-isolation.

Indeed, the value of near-instantaneous identity verification was evidenced after 700,000 people applied to volunteer for the NHS last month. The traditional process for verifying applicants was unable to scale with the surge in demand, which resulted in a backlog of nearly a week to verify some applicants.

The lockdown has been a proof of concept for showing that services which were previously done in person can be conducted digitally. We need to be asking ourselves why we should return to manual identity verification processes, such as having to go in-branch to prove our identity to open a new account, when it can be done quicker and more accurately online with a photo of an ID and selfie.

We also anticipate that we're likely to see a move towards more digital solutions to reduce physical touchpoints for those focused on hygiene and seeking a better user experience. This will manifest itself in different ways, such as moving towards cashless, digital payments.

We're also going to see processes that were traditionally touch-point heavy streamlined: for example, reducing the number of times that security handles ID in an airport or hotel check-in, by enabling passengers to show a QR code on their phone for identity checks.

Nikolay Storonsky, CEO of neo-bank Revolut

This pandemic demonstrates how people turn to technology when they need a truly flexible service that can meet their needs in a crisis.

We see this event accelerating demand for more transparent, convenient and flexible banking that gives customers more control.

Revolut has seen new interest in our gold and cryptocurrency trading services as consumers look for alternative investment opportunities.

Those sorts of investment options used to be only available to large-scale investors but apps like Revolut are democratizing investment opportunities.

People increasingly value instant updates on spending, secure transactions and transfers, and access to virtual and disposable cards as they rely more on online shopping.

Robin Tombs, CEO of ID verification firm Yoti

Yoti is unique in the digital ID space because we have business solutions, plus a ready-made product in the hands of 6.5 million consumers, the free reusable Yoti app. We've always focused on innovation, privacy and making it easier and safer to prove your identity and access places or services — that will continue.

We're already seeing greater demand for digital identity verification across a broader range of sectors, from sports operators to utility companies, health providers and more. Businesses are looking for secure ways to operate remotely, limit unnecessary physical contact and explore how to get people back into their regular or increasingly new operating environments.

Internally, it's clear many of our staff are proving are able to work effectively in their teams working from home. Everyone's use of Hangouts has rocketed and more staff our participating in discussions. I don't think we'll be doing away with our offices but I do think more of our staff will work more flexibly reducing how often they commute into London and their demand upon London's overcrowded travel system.

I see more individuals, businesses and organisations regularly needing digital identities. I think more players will enter the market as they realise the vital role digital identities can play in helping and protecting people, society and business. I also think we'll see more of the existing identity providers try to adopt more of a consumer-led approach as people prove their identity with a broader range of businesses every day - online and in person.

Individuals won't want to have to re-verify their ID every time to get things done. Businesses will equally want instant results using something that's secure, scalable and portable. The industry will need to adapt to the new ways people require digital IDs and I feel the Yoti approach is well-positioned to bridge the gap between businesses, organisations and consumers in these challenging times.

The world as we knew it has changed and there are sadly negatives in the loss of life and disruption to so many people and businesses that drive the economy. We're learning many things about our globally connected world the hard way right now. But we also have to look for positives. We're seeing a greater appreciation for key workers and empathy for people and the planet, which can only help society move forward and rebuild.

I think governments will redouble their efforts to ensure their citizens have access to reliable, affordable mobile and broadband connectivity which over the next decade will allow for dramatic improvements in access to online health, education and training services, enabling more adults and children to lead more fulfilling and happier lives.

I am an optimist and think people will have a greater understanding of the collective challenges we face as a connected planet - and create new ways to grow sustainably and protect each other, something we've built into the core of Yoti from day one as a B-corp.

Sunil Chandra, CEO of fintech OakNorth

Now more than ever, we need to work together to find solutions to support small and medium-sized businesses (SMBs) – the backbones of communities and economies globally – and ensure they can emerge from this crisis intact.

At OakNorth, we've always been of the view that how financial institutions underwrite loans and monitor them really matters, particularly for loans in $1m-$25m segment.

In the last two weeks, we've moved quickly to support US lenders participating in the Paycheck Protection and Main Street Lending Programs. We're proud to be working with lenders such as Customers Bank and Modern Bank which have been incredibly proactive and leading the charge in ensuring SMBs get access to the funding lifelines they need.

No one knows the long-term effects of COVID-19, so all of us need to band together to support businesses, the community and one another.