The lower valuations caused by the economic uncertainty gripping the world provide a great opportunity for investors, says a serial digital entrepreneur.
“The economic fallout of what’s happened is just starting to be realized. At the moment, a lot of the investors are sitting on the sidelines, yet some are taking advantage of investment opportunities,” David Nicol Williams told Via News in an interview, about the economic downturn sparked by the coronavirus pandemic.
Dave is a U.S. pioneer in the advertising, digital marketing, and ad tech industries and is the co-founder, chairman, and CEO of NomadX—a real estate and education platform focused on location-independent professionals or digital nomads.
The company, which has over 2,000 property listings across Portugal and has global expansion plans, offers apartments, private bedrooms, and co-living spaces for rent direct from hosts for as little as a month and at competitive prices.
Dave says investment has slowed down in recent months as a result of the coronavirus, which has taken a heavy toll on many industries and has blighted global economic growth prospects.
“In our category, the travel segment, we’re seeing investors saying, ‘Let’s push back another three to six months in terms of investment.'”
He added that they had planned to launch a crowdfunding campaign in April or May but decided to postpone it for three to six months until the industry gets back on track.
The CEO of NomadX said the existing economic situation is affecting the companies because their valuations may not be as high.
“So that’s a good opportunity for investors. Some segments are doing better than others. Obviously, travel has been affected. But those could be good buying opportunities in the future.”
Asked about recommended areas for investment, Dave said technology companies that take advantage of remote work tools are good investments at this juncture.
“A lot of the investors are sitting on the sidelines, yet some are taking advantage of investment opportunities.”
David Nicol Williams, chairman, co-founder, and CEO at NomadX
Lisbon, Top Destination for Nomads
Lisbon—where NomadX is headquartered—is among the top 10 destinations for digital nomads worldwide, according to the May 2020 ranking of Nomad List that introduces the best places in the world to work remotely.
The city is 4th among the European Union cities after Budapest, Belgrade, and Bansko.
On prospects for the Portuguese capital after the COVID-19 crisis, Dave said he thinks that Lisbon will continue to remain one of the digital nomads’ favorite cities because of the quality of life it offers, its geographical position, and its vibrant culture.
“People are gonna be coming back to Lisbon. They’re gonna be coming back to Porto,” he said while encouraging location-independent workers to explore further into Portugal and start going to some other areas, such as Ericeira, Peniche, Madeira, and the Azores.
Portugal is expected to recover better than ever, the co-founder of NomadX noted, adding that they are “super excited” for the digital nomad industry.
“Unfortunately it’s slowed down a bit, but a slow mode sometimes allows you to focus and take some actions you might not have taken otherwise. So we’re optimistic.”
Affordability Factor
Dave says Portugal is a “great” country where many digital nomads want to set up their homes and “come to die”.
“We don’t see that slowing down. And, if anything, the affordability of Lisbon is gonna be even better than it was the previous year, which will help lure more digital nomads to come and try out Portugal, return to Portugal, and maybe even make Portugal their home in the future,” added the chairman of NomadX.