The Next Generation of Tech Disruptors
Finally, the time has come that the costs of servers, websites, engineers, and other fixed costs, that there is enough margin to squeeze out a profitable company in more niche markets. Real estate, finance, banking, insurance, travel, and leisure have blossomed into 100 billion worth companies. Some companies, like Airbnb and Robinhood are more established, because they caught the wave earlier, others, like Opendoor are trying or retrying to become the household name and winner in there respective verticals. In addition, the fact that all the gen 1 companies are now huge conglomerates, there are copy cats all over, specifically in niche geographies that have been able to beat them at there own game. For example, Coupang in South Korea has been able to keep Amazon from taking over. There business model is almost identical. They have there own version of Prime called Rocket, which gives you same day delivery, entertainment, deals, and other amazing deals. The working thesis here at Levaton is that this next generation of disrupting companies and foreign copycats either have or will start taking over the less broad markets and usher in software first, technology solutions to places the consumer has continued to struggle. Additionally, much of the growth for many of the gen 1 companies has either slowed significantly or stalled altogether. Gone are the days of monopoly growth of 40, 50, 60% growth. Google has the highest growth out of any of the names at around 20%, while apple is basically not growing at all and haven't come out with a new groundbreaking hardware in the last ten years. While the first gen companies will still keep a strangle hold on much of the software world, they are too big to copy or buyout there disruptors and there brands have already been established and they are what they are. This leaves a gap in the economy and will be filled by the next generation of software companies doing difficult