Tracking the black swan: 9 events that changed finance history (Infographic)

The black swan has become a portrayal of extreme unpredictability and deviation from the norm. This has led to the ubiquitous term “black swan theory,” which was popularized by Nassim Nicholas Taleb. A black swan event carries with it three characteristics: unpredictability, extreme impact, and shock value.

Take for example, Brexit, which is the most recent black swan event. Prior to Brexit, London was seen as an attractive place for startups due to its positioning as a gateway to the European market.

Following the vote to “leave,” UK based startups now have a smaller talent pool to hire from since it will be more difficult for EU citizens to live and work in the UK. This is critical because most startups operate in an ecosystem of high growth, and because the ability to quickly recruit the right talent can make or break an idea.

Inevitably, the funding landscape is also affected. Businesses and investors had access to many advantages when UK was a member of the EU. Following Brexit, investors have been pulling out of UK startups as uncertainty looms with how the country will tackle the decision’s consequences. According to the Financial Times, funding for UK companies has already declined by a third.

Because of the unpredictability of black swans and the massive impact they create, it is thus advisable to always stay vigilant and prepared for any such event.

Tracking the Black Swan

This infographic, created by Call Levels, will take you through a series of nine major black swan events that took place since the New Millennium to the present day. While black swans are, by definition, unpredictable, startups can be prepared for them by planning for worst case scenarios, keeping communication channels open, and handling crises calmly.