Digital Nomads
September 22, 2024
My brother-in-law’s brother-in-law (so my brother-in-law2), a software engineer, visited my family a few months ago when he and his fiancé, an EdTech marketer, were temporarily living in Brooklyn. Before that, they spent a few months in Jackson Hole (ski season), and before that, a few months in Seattle. Last I checked, they were in London. This “Digital Nomad” lifestyle marries wanderlust with the practicalities of having a stable and/or flexible job. It has become more common after Covid, as many new concepts of work have. The closest I ever had to this was being a consultant, but of course staying at a hotel, working at a client office, and ordering room service for dinner is not the same as getting a long-term Airbnb rental and actually living in a place for several months. While growth has tapered off in recent years, there has been sizable growth in digital nomadism from pre-pandemic levels (see chart below). Though there isn’t a set definition of "Digital Nomad," and the term can refer to freelancers and full-time remote workers, according to a recent survey by job platform MBO Partners, nearly one in ten workers in the US self-classify themselves as such.
Key requirements for Digital Nomadism include:
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Location Independence: The primary characteristic is the ability to work from anywhere with an internet connection, freeing individuals from the constraints of a traditional office.
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Asynchronous Work: Many digital nomad jobs allow for flexible scheduling, enabling individuals to set their own hours and manage their workload autonomously.
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Technology: Use of laptops, smartphones, and other devices is essential. Common tools include project management software (e.g., Trello, Asana), communication platforms (e.g., Slack, Zoom), and cloud services (e.g., Google Workspace, Dropbox).
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Connectivity: A stable internet connection is crucial to allow for work with teams and/or clients wherever they may be physically located. This is a key determinant for choice of destinations and accommodations.
Common job functions of Digital Nomads include: Software Developers, IT Support, Graphic Designers, Writers, Digital Marketers, Social Media Managers, Online Tutors/Trainers/Coaches and Administrative Support Staff. Essentially, most “knowledge worker” jobs that don’t require a physical presence. With Telehealth services, even medical professionals can be Digital Nomads.
From an investment perspective, Digital Nomadism taps into several trends including future of work, remote collaboration and desires for work/life balance. Many of the companies that serve the Digital Nomad lifestyle have broad appeal in more mainstream applications such as project management tools like those from Atlassian, communication platforms like Zoom, accommodation platforms like Vrbo, currency transfer platforms like Wise, language instruction like Duolingo, and much more. Somar has been following most of these related sectors for several years as they epitomize the secular changes brought about by technology and business innovation that we specialize in.