Startups come and go on a seemingly daily basis. They all seem like fantastic ideas at the time, but also boast a high turnover rate and struggle to stick around for more than a few years. So which startups have the staying power to make a good investment?
There are a few practical ways to find out which ways the winds are blowing. Societal attitudes, changes in the environment, and an increasingly globalized world are major influences on which startups are going to lead the pack. Instead of throwing whatever at the wall and seeing what sticks, these startups are highly motivated and have a strong understanding of the demands of their niche.
Below are the top startup funding deals to look out for and why you might need to pivot this year.
Why Aren’t We Funding This?
Choosing a startup is the hardest step for many. Over 130,000 startups are created every day, with COVID-19 adding a new curveball by limiting in-house options.
Do you choose the promising startup emerging in a dying niche? How about the startup with a good track record, but a severe lack of focus? It’s not possible to choose perfection, but it is possible to mitigate the unreliable details. The ideal startup has chosen an in-demand niche, has a concrete plan on how to address its primary pain points, and is open to collaboration.
Investopedia discussed how a lack of revenue stream or customer base is a big red flag when choosing a startup. Once you have these essential parts in place, yearly success is much more attainable.
Renewable Energy Startup Trends Are A Gamechanger
With climate change getting more intense by the year and businesses becoming more environmentally conscious, renewable energy startups are in. They also won’t be leaving anytime soon.
A 2020 study found renewable energy startup investments increasing by nearly 15% compared to 2019. These include green electricity, total carbon neutrality, and related technology such as electric cars. An impressive 75% of Millennials are also more willing to pay for environmentally sustainable products and services, which is no small sum when you consider they’re today’s major buying market.
Renewable energy reflects the needs of the planet and, by default, the needs of the people. Startups targeting these pain points have a very bright future ahead of them and are one of today’s safest investments.
“Energy companies are hard at work – electric vehicle makers, energy storage distributors, solar manufacturers, and so many more. But as their technologies gain more traction and potentially take off, a successful energy company recruiting strategy is needed as jobs pick back up to execute on their business goals.”
Plant Based Milk Is Taking Over Food And Beverage
There are a slew of primary audiences for plant based milk hungry for options. If you’re searching for a reliable startup funding deal, plant based milk is a reliable niche with high demand.
Vegetarians and vegans are two audiences that lean toward plant based milk, but aren’t the only ones. Lactose intolerant drinkers, health-conscious dieters, and curious buyers are all invested in the growth of plant based milk. Almond, soy, and oat are primary sources, though will soon see competition. Not Milk is one such brand that has combined unique recipes to create impressively similar alternatives to dairy milk.
With plant based foods found to have net a stunning $7 billion in sales, this is one niche that refuses to be an underdog.
Digital Health Is Rapidly Rising In Demand
Healthcare is at its best when it’s accessible, affordable, and able to adapt at a moment’s notice. Digital health startups have recognized this intense demand and are stepping up to the plate.
Healthcare apps are one such investment today’s startups are focused on, designed as a deceptively simple middleman between the healthcare provider and their patients. These handle everything from invoicing to answering simple questions, explicitly designed to make everyone’s job easier.
“The addition of mobile application technology to the medical field has opened many doors for patients. They now have direct access to accurate medical information from the convenience of their mobile handheld devices.”
Machine Learning And AI Is Here To Stay
Following hot on the heels of digital health demands, machine learning and artificial intelligence is a fantastic answer to today’s burnout problem. Reinforcement learning creates a more hands-off approach for businesses and customers, crafting rewarding outcomes with less effort.
What makes this startup so flexible is how many fingers in the pie it has. You can find it in the health field, food and beverage, customer service, manufacturing, and data analytics, just to name a few. With technology growing more rapidly than we can keep track, machine learning is guaranteed to remain a fast, in-demand solution to modern business problems.
Related: Today’s Role Of AI In Healthcare
VR For The Business World
Much like machine learning and AI, virtual reality is a complex subject with thrilling potential. Not strictly restricted to gaming, this digital tool is set to become a boon for businesses in the coming years.
Statista has revealed virtual reality is set to reach a value of more than $12 billion in just a few years. It’s widely considered a vital tool in developing soft skills and technical skills, such as training future surgeons in a simulated environment. A surprising connection between virtual reality and blockchain technology is also starting to make itself clear.
Omnicept, for example, is one such revolutionary virtual reality headset making waves in the business sphere. Designed for the PC, it’s expected to become the new enterprise-level standard in modern VR technology.
Food Delivery Is A Reliable Seed Startup
Lastly, food delivery is a sound investment in a world defined by social distancing and a need for convenience. Due to food delivery relying on a mixture of strong customer service and sharp e-commerce strategy, it’s a prime niche for savvy startups.
Online food delivery has reached a staggering $151 billion as of this year, cementing it as the powerhouse of the startup industry. While niches are known for having specific audiences, food delivery is unique in that just about anyone benefits. From full-time remote workers to busy single parents, food delivery is a staple of day-to-day life for most. Thanks to the pandemic’s strict guidelines, fresh groceries delivered at your doorstep is now a health necessity, to boot.
“There’s no question that we will continue to see economic fallout from the pandemic, with some arguing that the worst may be yet to come. Due to both consumer and business mindsets drastically shifting, COVID has changed how we behave and react to products that are sold in the market today.”
Startups are the business definition of taking that first, monumental step. Translating that step into a successful journey is easier than ever with today’s analytics.
Food delivery, plant-based milk alternatives, machine learning, digital health, and renewable energy are the titans of the startup industry. They meet daily needs for both businesses and consumers, bridging the gap with convenience and adaptability. There is also significant overlap with digital health and machine learning.