Digitization in the Pandemic: How Companies Are Building for Success

Updated: Mar 23, 2021

COVID-19 has created a multitude of challenges that governments, international institutions, and the private sector are eager to meet. Efforts to minimize the virus’s impact on human life have resulted in significant social and economic disruption. Thus, innovative products and services are emerging that can address the changing social and economic landscape. Specifically, the pandemic is catalyzing investment opportunities in healthcare and the digitization of legacy services. According to a report from McKinsey Digital, an increasing number of customers have turned to digital channels during the pandemic, increasing resilience in combating COVID-19 and leading to a boost in the digital market.

The opportunity of digitization largely increased due to the pandemic-driven demand for digital products and services during this extreme time period. Digitization refers to using digital technologies to create new value and more opportunities for the company, and automation refers to using artificial intelligence to replace the human labor force. At Bridge Point Capital, we picked out major startups focused in these fields and categorized them across enterprise productivity, childcare & education, food service & delivery, and health & wellness. As economies slowly reopen, the COVID-19 pandemic may have long-term consequences on society, and we believe that investments in digitization are a safe bet for weathering market fluctuations.

Enterprise productivity

Company work strategies have been upended by the shutdown, and many are looking to improve business efficiency as guidelines continuously change. Given the constraints of social distancing policies, businesses across all sectors are finding it prudent to shift their strategies towards remote work and adaptable structures.

  • Demand for digital productivity solutions

  • Viability of remote work

  • Automation in logistics and manufacturing capabilities

  • Virtual network

Childcare & education

Governments from federal to local are currently brainstorming ideas to support their communities when summer comes to a close. Creative solutions for education technology and daycare assistance are in high demand and provide a huge opportunity for success.

  • Political momentum to expand child care benefits to parents

  • Coronavirus-related anxiety solutions

  • Schools’ preparation to start in the fall

  • A long runway of opportunity for Education Technology

Food service & delivery

The restaurant business is one of the most adversely affected industries in the United States. The $863 billion industry has been shaken to the core, and companies supporting the food service economy through delivery models and new technologies will find a large customer base looking for solutions to stay in business.

  • Delivery companies acting as lifeblood for many restaurants

  • Grocery delivery helping customers stay home and eat out less

  • Social distancing and human separation supported by nascent technologies

  • Reducing dependence on face-to-face interactions to ensure better safety

Health & wellness

In a country ill-prepared for the rise of mental health issues, COVID-19 and social distancing policies have accelerated the need for health and wellness solutions in the United States. Online therapy company TalkSpace has seen a 65% jump in clients since the start of the pandemic, and a federal emergency online has seen a 1000% increase in users this past April.* Companies who provide solutions to effectively combat the side effects of isolation and social distancing will find steady growth in the health and wellness sector in the near future.

  • Changing laws and regulations of telemedicine leading to increased access and use

  • Fears about the health effects of COVID-19 leading to an uptick in the need for mental health counseling

  • Prescription delivery quickly gaining in popularity

  • Brick-and-mortar fitness businesses have been hammered by the closures, leading consumers to explore digital fitness alternatives across devices and apps

The sudden shutdowns in the United States left many businesses scrambling for new ways to stay operational. Digitization and automation have provided key solutions to create new opportunities for industries struck the hardest by the pandemic. Although firms realized these strategies could capture more value, the COVID-19 pandemic has quickly turned them into necessities. At Bridge Point Capital, we believe that digitization and automation could be a driving factor in creating sustainable economic growth and investment returns in the near future and provide a platform for the next generation of companies to create solutions for a society scarred by COVID-19.