COVID Slingshot Startups

A framework for understanding "slingshot startups" - companies that faced setbacks during COVID but are positioned to surge forward post-pandemic.

Core Concept

• Term coined by Jason Calacanis
• Companies pulled back during COVID but building momentum to slingshot forward
• Focus on businesses taking advantage of pent-up demand

Key Industries Positioned for Slingshot Growth

• Physical/In-Person Services
  • Gyms and fitness
  • Physical retail
  • Schools
  • Travel/hospitality
  • Sports/entertainment venues
  • Concerts

Success Factors During COVID

• Entrepreneurial adaptability
  • Example: Fitness AI pivoting from gym-based to home workouts
  • Example: Guru Hotel adjusting business model to stay flat then grow
• Forced innovation
  • NBA expanding revenue streams (sports betting, NFTs, new sponsorships)
  • Companies finding new business models when core revenue disappeared

Post-COVID Consumer Behavior Insights

• Strong desire to return to in-person experiences
  • Packed sports arenas
  • High travel demand
  • Family reunions
• Quick abandonment of "necessary evil" COVID alternatives
  • Remote learning likely to decline
  • People eager to return to in-person activities
• No lasting "COVID PTSD" about crowds
  • Sports venues selling out
  • People comfortable in high-energy environments again

Investment Opportunities

• Look for companies that:
  • Showed resilience during COVID
  • Found new revenue streams
  • Have adaptable leadership
  • Are positioned to capture pent-up demand
  • Improved their business model during the downturn