The word “tech” is derived from the technical and engineering description of the developments and inventions of the various machines and tools used by humans. Technological advances are those that result from the application of science and technology to an area of human activity. Technological systems are the resultant of human knowledge, skill, and technology applied together. The world of technology is growing at an astounding rate. Industries are sprouting up everywhere with new technologies replacing older ones.
Venture capitalists are beginning to see the value in “tech companies” that consist of high-end computers and software systems and highly skilled technical personnel. Venture capitalists typically fund start-up companies based upon a proven business plan, strong management team, excellent management, excellent financial backing, good prospects for growth, and an attractive business model. Investors are beginning to take notice of the benefits provided by high-end computer systems, cellular phone applications, and Internet related technologies. Venture capitalists are beginning to provide seed financing to many of these start-ups in order to facilitate their progress and development as they develop a business plan and raise funds.
With so much technology already in use, many potential customers are hesitant to make a purchase if they can not demonstrate comfort with the product or service. To address this concern, some tech companies have developed products or services that are designed to be user friendly, intuitive, and convenient. They provide an easy to use interface, high level of user friendliness, great customer support, low maintenance, and zero marginal costs. Customers who are comfortable using the product and have no fear of having to perform a series of complex tasks or navigate through a complicated user interface will be more likely to make a purchase.
The trend in technology transfer and innovation is moving from the manufacturing sector to the service sector. Tech is moving into the atlas of the 21st century. Some tech firms are investing heavily in research and development to create new products and technologies that will be relevant one day. At the same time, many are creating new processes and tools that make life easier for sales and service personnel. Salespeople and technicians can leverage their tech savvy and knowledge of sales processes to penetrate the customer base and close deals.
Companies like Airbnb and Zulip are using their technological expertise to bring communities together. These companies have developed a social network platform that allows individuals to monetize their personal space. On Air CNBC, a tech company called Zulip is leveraging its tech company status to market its own product. Zulip’s founders are former executives from Google, Yahoo, and Microsoft, which means they understand the value of monetizing the social web and turning it into a profit generator.
Another example of a tech company leveraging its knowledge to develop a service is Zuul, a health and wellness tech company that developed a blood glucose meter that can be used by doctors and nurses. When the company launched in early 2021, it offered a free glucose meter to anyone who was interested and now it has grown to over 13 million people. The key to this kind of growth has been zero marginal costs and utilizing the company’s own expertise and contacts. Because it’s a health company, Zuul uses its contacts at hospitals to help grow its brand. It also leverages the power of email, word of mouth, and online community engagement to create a powerful impact.