The future of innovation: Top 10 emerging startup trends to watch.

Aug 14, 2023 | Blog

Startups are the lifeblood of any modern economy. Startups bring fresh ideas and disruptive technologies to create new products, services, and industries. But to stay ahead of the curve, keeping up with the latest and innovative trends in startup culture is essential.

Here are our top 10 emerging startup trends for 2023 and beyond.

1. Fintech startups

Fintech refers to using technology in the financial sector to facilitate transactions, documentation, or trading. Some examples of fintech firms are Coinbase, Cash App, and Stripe.

But fintech is more than just digital payments. Fintech encompasses everything from automated investment services to blockchain technologies, neo-banking, and beyond.

In the wake of the pandemic, fintech startups have become increasingly popular, and the industry has witnessed significant growth in recent years. Experts anticipate the fintech market will be worth nearly $700 billion by 2030. This is because people can perform certain financial services, such as money transfers or trading, faster and cheaper than other alternatives.

Though funding for fintech startups has seen a declining trend in the first half of 2022, citing an adverse economic climate, this sector still comprises 21% of all unicorn companies. This suggests many consumers have yet to embrace fintech, leaving room for further growth. Consumers are more inclined to use alternative banking and other financial technology services with low or no fees.

2. Artificial intelligence (AI) startups

Artificial Intelligence is another massive industry creating a lot of noise in the startup scene. Industry insiders estimate the industry to be valued at over $1.5 trillion by 2030. The remarkable growth of Open AI’s ChatGPT illustrates that AI will significantly impact research, content development, marketing, and other activities. Some popular AI startups are Jasper, Google’s Bard, and most recently launched Elon Musk’s xAI.

The AI industry experienced a remarkable growth in funding of over 90% since 2017. Although funding has slowed down, the significance of AI technology continues to rise in our daily lives.

This is evidenced by ByteDance, currently the world’s highest-valued startup. ByteDance owns TikTok and several other popular Chinese social media brands and content platforms.

ByteDance collects a tremendous amount of data across its various platforms to deliver personalized content to its users and other marketing tools to its clients. These tools analyze user behavior and optimize ads for maximum engagement.

3. Autonomous vehicles (AV) startups

Autonomous vehicle technology promises to revolutionize the transportation industry in many ways. Autonomous cars could reduce road fatalities and congestion while offering many people a more efficient, affordable form of transport.

The Autonomous Vehicles (AV) market is increasing and is expected to reach $5 trillion by 2031 with an annual growth rate of 36.3%. Although the pandemic has slowed progress, AVs have the potential to revolutionize transportation.

Though Tesla is leading in market share, many other companies have emerged and are investing heavily in the industry. Legacy manufacturers such as Toyota and Ford are also developing AVs to meet increasing consumer demand. This suggests that the AV industry is primed for even greater growth in the future.

4. Health and wellness startups

The COVID-19 pandemic caused a change in the priorities of both employees and employers. People started to value health and wellness more in the workplace. A company’s approach to health and wellness can now play a significant role in whether an employee decides to leave or stay.

It’s been reported that more than 47% of HR leaders consider employee retention as one of their major challenges. On the other hand, employees resign for the top two reasons, such as the lack of work-life balance or career growth opportunities.

It’s reported that up to 93% of tech companies are enhancing their policies and practices to offer flexible working arrangements. Additionally, more than half of these companies provide benefits to support mental and emotional health. As such, over 50% of employers across all industries anticipate that health and wellness benefits will be even more crucial in the next three to five years.

5. Metaverse startups

Facebook’s Mark Zuckerberg has generated a lot of buzz with his ambitious project to create the metaverse. This technology has great potential to reinvent how people interact online. It could also provide new business opportunities for entrepreneurs. Metaverse is a new area for capitalism that encompasses a variety of topics such as crypto, NFTs, and gaming.

The revenue potential for the metaverse is immense. According to certain analysts, the market could reach $800 billion in 2024 and $1.6 trillion by 2030. Notably, major brands such as Gucci, Coca-Cola, JPMorgan, and others have already taken notice of this digital trend.

As such, some other leading metaverse companies that received significant funding in 2022 were Epic Games, which earned $2 billion in financing. Epic Games is the maker of Fortnite. Meanwhile, eFuse, obtained almost $1 billion in VC funding, while LincTex Digital has raised $100 million in a funding round.

6. Tech and data startups

Remote work has become the new normal during the pandemic, with 59% of companies planning to offer permanent remote work options for their employees. As a result, there is an increased need for collaboration tools and solutions to ensure that working remotely is efficient and seamless.

Additionally, big data has become more critical than ever in helping companies make informed decisions. It enables businesses to collect and analyze customer data and generate insights that can be used in almost any industry, from retail to finance.

As such, the global market for HR software is predicted to expand by over 100% between now and 2028, with the influx of new technology and data startups.

7. Biotech startups

The biotech industry is currently worth $414 billion, and this value is anticipated to increase as advanced DNA analysis becomes more widespread. You’re probably familiar with ancestry tests, which have become quite popular.

But soon, DNA may be used to make informed decisions. For example, DNA Nudge offers DNA via a cheek swab, a mobile app, and a “DnaBand” wearable device for your wrist. This technology provides individuals with personalized nutrition recommendations based on their DNA.

Some startups are combining artificial intelligence and individuals’ DNA profiles to figure out the best exercise and skincare routines for them.

Other exciting new biotech trends in recent years include genome surgery, or gene editing, which can potentially prevent disease, preserve endangered species, and improve agricultural resilience.

Similarly, bioprinting, a type of 3D printing, can simulate natural tissue and may one day enable the production of human organs and more. Additionally, DNA Sequencing provides genetic information to healthcare professionals helping them identify diseases before they appear in an individual.

Grand View Research predicts the biotech market is expected to reach a valuation of $3.8 trillion by the end of 2023, with a compound annual growth rate (CAGR) of 13.9% over the forecast period.

8. No-code/low-code startups

Nowadays, people are constantly looking to create websites and applications quickly. As such, no-code startups have become incredibly popular in recent years. No-Code platforms allow non-technical users to build full-blown apps without writing a single line of code.

Zapier and Webflow are making it simpler for anyone to build digital products using “no code” or “low-code” methods. Webflow has reportedly raised $334.9 million in funding, according to Crunchbase.

Low code is a web and mobile development method using a drag-and-drop interface. It requires little to no coding knowledge and is used by experienced web developers and amateurs alike to build apps or prototypes quickly.

9. Sharing economy startups

In the past decade, there has been an influx of startups that have learned they can use dormant properties, leading to the rise of the Sharing Economy.

Airbnb is the most prominent sharing economy startup that enabled homeowners to lease out their houses and apartments when they aren’t using them and earn additional income. This disrupted the hotel industry since rooms advertised on Airbnbs are more affordable and comfortable for most travelers.

In recent years, the sharing economy model has expanded to other industries, such as transportation and food. Uber and Lyft are two of the most well-known companies in this shared transportation space.

A new company called Cloud Kitchens by Travis Kalanick, the former CEO of Uber is leading the way in this trend. Cloud Kitchens provides shared kitchen spaces exclusively for delivery-only restaurants. These kitchens make it possible for new food businesses to take advantage of the growing food delivery trend in prime locations without investing in any cooking facilities.

10. Online convenience services startups

When it comes to online shopping, delivery speeds, and customer service, we all know that Amazon sets the bar very high. To compete, many startups are leveraging technology to develop online convenience services.

Take Lensabl, for example. This startup provides a service for replacing prescription lenses online. The company’s revenue is around $12.5 million, according to Owler. This is how Lensable works.

Customers take an eye test at home using Lensable’s online test. Lensabl’s eye test kit is quite compact. The company sends the customer their new frames with new lenses. Their service model also allows customers to send their frames to get fitted with new lenses.

Startups focusing on making things or delivering services that make customers’ lives convenient will always succeed. Furthermore, This service can attract enthusiastic fans who will spread the word about the product, mainly through social media.

Conclusion

There you’ve it—the top 10 startup trends to look out for in 2023 and beyond. It’s an exciting time to be in the startup space now, as the industry is constantly changing and innovating due to new technologies. If you’re an entrepreneur, these trends can help you select an industry to focus on. And if you’re a VC, tracking these trends can boost your chances of discovering the next highly successful startup.

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