TECH + INNOVATION

The Great Pivot:

How Montana’s Tech Companies are Adapting to Survive (and Even Thrive) in the New Normal

By Christina Henderson FOUNDING EXECUTIVE DIRECTOR, MONTANA HIGH TECH BUSINESS ALLIANCE

Coming into 2020, Montana’s high-tech industry continued a multi-year trend of fast growth. In 2019, high-tech grew nine times faster than other sectors and represented more than $2.5 billion in revenues, according to a survey conducted by the UM Bureau of Business and Economic Research.

The official report on 2020 is still in progress, but most indicators show Montana’s high-tech industry has weathered the pandemic well overall. When COVID-19 hit, we did see a sudden downturn in Q2 of 2020 with layoffs at a few companies in software, advanced manufacturing, and marketing technology. Many impacted firms have been able to adapt quickly and leverage PPP funds to bridge gaps. A number of those employers begin rehiring in late 2020.

Some big success stories emerged in recent months: • In July 2020, Missoula-based biotech therapeutics company Inimmune

secured a $22M Series A investment

from Two Bear Capital in Whitefish to advance multiple lead programs through Phase I human clinical testing. • Ascent Vision Technologies (AVT), a veteran-owned firm specializing in counter-drone technology and aerial surveillance systems, announced in

August 2020 that it was acquired by

CACI International for $350 million and will keep its headquarters in Bozeman. • In February 2021, IT consulting company Helix Business Solutions was acquired by Speridian Technologies.

Kevin Sherwood, Helix CEO and

Montana resident, will continue to lead

Helix under Speridian as its own business unit. Helix is actively hiring for jobs that can be done from the office in

Dillon, Mont. or remotely.

Most tech companies have been able to shift successfully to remote work and continue operations safely.

We’ve seen three key ways Montana tech leaders are pivoting their business models to meet current challenges in 2021:

1) PURSUE NEW MARKETS

Some industries had immediate declines in business due to COVID-19, while others spiked in demand. Tech companies serving sectors like small business, education, retail, restaurants, and hospitality saw revenues dry up overnight. Leaders hustled to pursue new market opportunities.

PFL is a marketing technology company in Livingston with more than 300 employees. Founder and CEO Andrew Field said the pandemic caused drops in some verticals, such as printing restaurant menus, but boosted others. PFL found new business warehousing and delivering supplies for medical device companies and health insurance providers.

Over the last year, PFL leveled-up its

customer base and enhanced its Tactile

Marketing Automation product, serving sophisticated marketing organizations such as Salesforce, SAP, and Zoom. In December 2020, PFL announced plans to hire at least 80 additional new employees and in March 2021 reported 40 percent year over year growth.

2) DEVELOP NEW OFFERINGS

The pandemic has driven rapid adoption of technology. A number of tech companies have stepped up to offer new solutions to emerging problems. Montana’s biotech industry in particular has accelerated its rate of innovation: • FYR Diagnostics in Missoula, funded by

Two Bear Capital, is developing a faster test for COVID-19. • Bozeman’s Golden Helix developed bioinformatics software to automate the diagnostic process. • In telemedicine, startups like Pulsara in

Bozeman and Ahana and Patient One in Missoula have developed innovative

platforms to leverage technology “For the first time, our clients .... were ready for a video conference. And that meant no more last-minute plane flights, no more paying for hotels or being separated from our families.”

SHERRI DAVIDOFF, LMG SECURITY

within healthcare and minimize contact between patients and frontline workers.

COVID-19 has created countless new pain points for entrepreneurs to solve and increased the urgency for customers seeking solutions.

3) GO REMOTE

The shift to remote work has not only allowed tech companies to continue operations during shutdowns. It has also paved the way for firms to provide more services remotely, benefitting both businesses and their employees.

For Sherri Davidoff, founder and CEO of LMG Security in Missoula, 2020 was a year full of ups and downs. “Above all, I’d say it was a year of opportunity,” Davidoff said at the Montana Economic Outlook Seminar in February.

LMG Security is a consulting company that helps clients prepare for, defend against, and repair the damages of cyberattacks. For years, LMG was ready to offer services like penetration testing, ransomware negotiations, and wireless network assessments remotely, but customers preferred to have consultants on site. With COVID, all of that changed.

“For the first time our clients were willing to accept that—they were ready for a video conference, were ready to plug in these devices and work with us,” Davidoff said. “And that meant no more last-minute plane flights, no more paying for hotels or being separated from our families. My expectation and hope is that a lot of this will continue into the future…and this gives caregivers, [particularly] women, more opportunities to grow in the industry.”

Despite the challenges of 2020, business leaders have shown that through resilience, adaptability, and innovation, Montana’s high-tech companies are positioned for a fast comeback. stop

Christina Quick Henderson is founding executive director of the Montana High Tech Business Alliance and an instructor in the University of Montana College of Business. She worked previously as Marketing Director for the UM Bureau of Business and Economic Research. She holds an English/Education degree from the University of Iowa and an MBA from UM.