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Trends in the startup scene are always changing and evolving.
As the digital landscape and access to startup funds becomes increasingly diverse, entrepreneurs have a wealth of information and options available to them to help make key business decisions.
Whether it’s crowdfunding, angel investors, or more traditional funding options such as business credit cards, starting a business today has never been easier.
However, what might have worked a few years ago may not work now. What is popular now may not be popular in a few years. So what startup trends should you be on the lookout for in 2023 and beyond? Here are a few to keep an eye on.
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Mobile Businesses Continue to Be a Startup Trend
Food trucks may have historically been the most common type of mobile business. But we are now seeing a startup trend toward even more businesses popping up on wheels. From beauty parlors to mobile bars and everything in between, mobile businesses are popping up to cater to just about every need.
These startups offer a unique level of convenience that is perfect for our fast-paced world. In addition, mobile businesses are often more affordable to start up than traditional brick-and-mortar businesses. This makes them a great option for entrepreneurs. A simple business credit card from Capital on Tap could be all you need to fund your mobile business venture.
Damian Brychcy, COO of Capital On Tap says, “Post-pandemic and with the return of events at scale, we are seeing more mobile businesses launching. Cashflow is a constant challenge and today we see a greater need for spend management tools, flexible funding, and real-time access to their funding with a mobile-first solution for owners on the go.”
Digital Nomads Start Businesses from Home and on the Road
The evolution of internet accessibility and communication technologies has made it possible for people to work from anywhere in the world. This led to a few people ditching the traditional 9-5 office job in favor of working from home (or anywhere in the world). However, this wasn’t really a startup trend as such.
However, the COVID-19 pandemic certainly accelerated the trend. In fact, more and more people now work from home (or otherwise remotely) than ever before. This has given rise to a new breed of entrepreneur, the digital nomad.
Digital nomads are people who work online and pride themselves on being able to live and work from anywhere in the world. This new breed of entrepreneur is often young, tech-savvy, and quite well-connected. They are often involved in online businesses such as e-commerce, social media, blogging, and content creation.
There has also been a rise in the number of startups that cater to these workers. From remote work tools and apps to digital nomad communities and co-working spaces, there is now a plethora of businesses and services that are geared toward this growing trend.
Climate Tech and Green Tech Are Up-and-Coming Startup Trends
As awareness of environmental issues grows, so too does the demand for products and services that help mitigate human beings’ effects on the planet.
Climate tech refers to technology that helps us reduce our carbon footprint. Green tech refers to products and services that are environmentally friendly. These two startup trends are already on the rise and show no signs of slowing down anytime soon.
This is particularly true as we move into an era of increased regulation around environmental issues. To illustrate, 45% more renewable energy was generated in 2020 than in 2019. Some examples of climate and greentech startups include electric vehicle charging stations, solar energy companies, wind energy companies, water conservation technology, and sustainable fashion brands. These are all set to grow in popularity over the next few years.
Niche Markets Are an Increasingly Popular Startup Trend
While mass markets will always have their place, niche markets are becoming increasingly popular, particularly among startups. It’s not hard to see why. In a world where there’s so much choice, people are looking for businesses that cater specifically to their needs. That’s where niche markets come in.
By catering to a specific need or want, businesses can stand out from the crowd and attract a loyal following of customers. These startups celebrate individuality. This is reflected in the fact that niche markets focus on highly targeted demographics such as the LGBTQ+ community, gamers, eco-conscious consumers, remote workers, and more.
Artificial Intelligence (AI) Is Set to Transform Business
The use of artificial intelligence (AI) is becoming increasingly commonplace and it’s not hard to see why. AI has the potential to transform businesses in a number of ways, from automating tasks and increasing efficiency to providing insights that would otherwise be hidden.
And as AI technology continues to evolve, so too will its application in business. In fact, experts estimate that by 2030, AI will have contributed $15.7 trillion to the global economy.
Some examples of businesses that are already using AI include Google (for search) and Amazon (for recommendations). Others are Netflix (for content recommendations), and Facebook (for targeted advertising).
But this is just the tip of the startup trend iceberg in this area. As AI technology advances, we can expect to see a whole host of new businesses and applications for this transformative technology.
We’ve seen automated chatbots, self-driving cars, and AI-powered personal assistants such as Siri and Alexa. And these are still the early days for AI technology. The potential for AI is vast. We can expect to see some truly game-changing innovations over the next few years.
Trends in Biotech and Life Sciences Lead to More Startups in Those Fields
COVID-19 has shown us just how important the biotechnology and life sciences industries are. As we continue to grapple with the pandemic, these industries are only going to become more important.
From developing vaccines and treatments, to manufacturing PPE and carrying out vital research, biotechnology and life sciences play a crucial role in keeping us safe. They also have the potential to help us solve some of the world’s most pressing problems, from climate change to food insecurity.
With this in mind, it’s no surprise that startups in the biotechnology and life sciences are set to gain ground in the years to come. In fact, even though the sector is already worth almost $300 billion USD, the biotech sector is projected to expand at a compound annual growth rate of 15.83% between 2021 and 2028.
Subscription-Based Businesses Grow as a Startup Trend
Subscription-based businesses have become ever more popular over the last few years. It’s easy to see why. They offer a convenient and affordable way for customers to access products and services on a regular basis.
What’s more, subscription-based businesses often have a loyal customer base that is willing to pay for quality. Some examples of successful subscription-based businesses include Netflix, Spotify, Amazon Prime, and Birchbox.
As we move into the future, it’s likely that we will see even more businesses adopting the subscription model. In fact, it was found that 75% of DTC brands may offer subscriptions by 2023. It’s increasingly clear that subscription-based businesses are here to stay.
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Startups need to continuously innovate to stay ahead of the curve, and trends reveal that 2023 is shaping up to be no different. These are just a few of the business trends that experts think will be big in 2023. So whatever industry you’re in, make sure to stay ahead of the curve and stay on top of the latest startup trends.
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