At the end of 2022, a great correction took place in the tech market. The heightened profits and demand of 2020–2021 came to an end and swathes of employees at the largest firms were laid off. The pandemic-era tech bubble had popped, and big tech firms saw half and more of their values abruptly wiped.
In 2023, a sluggish economy, fueled by rising interest rates, inflation, and high energy prices, has left total investment in UK tech down 57%. Here, we explore the causes and the opportunities the current climate can offer IoT investors.
Behind the struggle
2022 saw more than its fair share of financial and economic shocks. The NASDAQ dropped in value across four consecutive quarters and tech stocks fell harder than those of other markets. All in, it was the worst year for tech since the recession of 2008.
What’s behind the struggles? It’s complicated.
Tern plc (LON:TERN) backs exciting, high growth IoT innovators in Europe. They provide support and create a genuinely collaborative environment for talented, well-motivated teams.
