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Top startup trends in 2021 are majorly affected by the events of the previous years. 2020 was a tumultuous time for the planet. Waves of coronavirus disrupted global supply chains, and strict lockdowns ensured obliteration of countless businesses to the point of no return. Yet, even after irreparable damage to the current economic situation, the startup wave started at the end of the last decade continues to rage forth. The current rapid e-commerce growth will continue to revolve around consumer convenience and virtual solutions. However, the world would unequivocally look up to startups for innovative solutions and new perspectives. The pandemic has further fueled the need for innovative solutions, and here are eleven startup trends projected to expand for the next five years.
- BioTech Startups are on the Rise
Valued currently at $295 billion, which continues to grow every day, biotech startup trends are worth gambling on. A massive boost to biomedical science and innovation was observed in the pandemic, with solutions for basic health needs flowing perennially. Additionally, DNA tests and the rapid rise in public interest in ancestry has increased the potential impact of startups. DNA analyses to identify latent or predictable chronic illnesses are also on the rise. Startups utilizing this critical data to formulate nutrition needs and charts are also booming. Everyone is concerned about their longevity and safety, and until humans don’t find the cure for cancer, the medical niche will be a potential gold mine.
2. Online Education for the win!
The pandemic is to be largely credited to the unexpected boon to e-learning. The inevitable shift to digital platforms for learning needs due to the pandemic has forced the hands of those who were wary of it. As a result, the transition was smoother than expected, and everyone accepted online learning patterns merrily. However, the question remains, will it continue?
The answer is yes. Online learning websites such as Udemy and Coursera, which follow the current startup trends, have observed a massive surge in their user base. Such massive open online platforms help in the democratization of learning and further reduce the educational woes of the current demographic. In addition, credible online courses also help in increasing learning opportunities for working professionals.
3. Sustainable Financing Hits the Mainstream
With the growing awareness around investments’ environmental and social implications, sustainable financing startup trends will soon go mainstream in 2021. The concept is starting to gain high recognition with an estimated valuation at over $30 billion. Startups are starting to use this growing popularity to further their goals. Investment startups are becoming highly targeted towards identifying potential investors who believe greatly in a sustainable future. Pitches are more targeted towards their investment’s environmental impact, and startups are leveraging this soft spot to turn good profits. It might sound unethical, but the result of such meaningful investments is to secure future positions of sustainable businesses in a highly competitive market.
4. Untapped Market Identifiers
Startups are known for their nifty solutions to growing problems. More often than not, successful startup trends combine two different solutions in the hope to create an even better solution. Similar trends are visible around the globe, where new players aim to establish their strongholds in untapped surroundings using the proven business models of the giants. For instance, Glovo is swiftly gaining global recognition for its delivery-based business model. The model is highly similar to food delivery and taxi-hailing service, Uber Eats and UBER. However, the startup aims to inculcate the good of both apps to generate a once untapped market. The startup allows food delivery and includes delivery of other items as well, such as accessories, flowers, pet food, etc.
- Circumvent the Coding Issue
Startups that help in rectifying the problems of other startups are also observing a massive spike. The number of startups are undeniably growing rapidly. Some innovative startup trends have identified the potential issues and challenges most startups face in their early stages. One such bothersome issue is not having extensive lines of code to optimize apps or websites. Hence, platforms that allow users to create ‘low code’ or ‘no code’ custom apps and websites are accounting for a swift increase. These solutions are so well-designed and easy-to-obtain that even seasoned developers have routinely reported using them at times of imminent time-crunch.
- Share the Loot Instead of Losing it All
The last decade presents a unique approach to utilizing relatively unused assets. Airbnb is the best example of using other assets to your advantage. Airbnb utilizes the unused rooms or houses of their subscribers, allowing them to make additional side profits on an otherwise dust collecting asset. Startup trends that leverage the full potential of sharing economies will reap tremendous benefits in the near future as businesses start to expand into different sectors.
- Agility is the Greatest Ability
The COVID scenario exposed glaring cracks in the current business models that were highly rigid and brittle. The businesses following such models faced unavoidable bankruptcy, for they were unable to adapt to the new normal. Agile development is a growing methodology that encourages adaptive and flexible planning. Startup trends based on such models are consultancy firms that review other businesses and suggests potential changes to improve the streamlining of the reviewed firms. Such startups are mostly observed in the tech domain and integrate themselves with many automation tools to increase their analytical prowess.
- Consumers Want Convenience
The primary reason for the sharp growth pattern of e-commerce websites is their convenience factor. The service is more convenient than traditional business methods. Amazon is the epitome of such businesses. Lensabl is another startup enjoying the limelight, for they have reported $3 million in annual revenue. The core principle of the startup is to provide easy, at-home corrective lens solutions to its customers. Startups that utilize this trend and ride the convenience wave will irrefutably flourish. Additionally, such startup trends have better chances of success, for they can highly benefit from correct social media campaign application and promotion garnered through word-of-mouth.
- Address the Large Population
Whatever may Elon Musk say about population collapse, studies indicate that the Earth has more people than it could handle. The primary problem with a large population is food. Therefore, startups focusing on regenerative agriculture (the next step after sustainable agriculture) are gaining rapid recognition. It concerns itself with improving the soil condition after human use through a self-nourishing process. Agtech startups are gaining large amounts of funding from angel investors and environmentally active groups, which is growing in number. Also, these startup trends are highly lauded for their ability to improve and strengthen supply chains. Furthermore, their innovative solutions enable farmers to keep track of and monitor cows and their health easily.
- Personalization and Customization are the Keys
Deloitte has reported that the world renowned consultancy firm, has reported that personalized products and services increase company sales by over ten per cent. Customers are highly attracted to products that are unique and suited to their needs. For example, ‘Nike Makers Experience’ is a customization campaign launched by Nike that uses artificial intelligence to project final shoe designs to customers as they customize their shoes in real-time. The machine then generates the shoes on the spot in about 90 minutes. Even though the final product costs 30-40 per cent more than the base design, customers appreciate the initiative and massive sales are reported. Startup trends that focus on customer experience and final product quality are bound to win in the coming decade.
- Wealthtech is Also Gaining Fast
Stock market and smart investment solutions have reported exponential growth in the past decade. The growth is majorly due to increased awareness from the internet and rising business mentality among the masses, particularly the young demographic. Startups that provide easy stock-trading solutions such as Robinhood and Webull have been highly successful. Webull pushed aggressive marketing strategies such as stock-giveaway signup promotion to increase users. The gamble paid off as the app is now valued at over $800 million. Startups should recognize the growing demand for stocks and trading and use it to leverage the most out of their current business plans.
The global business scenario is highly sensitive right now, with some businesses growing rapidly and some sinking incessantly. However, the startup scene has only observed a boon in the pandemic. The startups follow a wide range of trends, and only a few of them are tenacious enough to survive the test of time. However, the list above consists of the most successful and praiseworthy trends of the past decade that are anticipated to continue in the coming decade.
