Increasingly, startups want to prove their Return on Investment (ROI) by measuring social and environmental impact. Searches for “sustainable finance” have skyrocketed.
Personalization is a growing trend among DTC brands, with Nike By You helping increase repeat sales despite costing more than regular products. The creator economy is also booming, with entrepreneurs monetising their passions through platforms like YouTube and Twitch.
Generative AI is expanding rapidly, promising to reshape industries and enhance human creativity. But it also poses challenges. For example, it can be used to create fake news and propaganda that can provoke political instability. It can also create images and text that pass the Turing test (named after famed mathematician Alan Turing) and appear to be created by humans, raising concerns about privacy issues.
Startups like Sefi AI use generative AI to offer application programming interfaces (APIs) for person-driven gamified content that helps businesses produce product and service explainers, increase conversion rates and improve marketing campaign ROI. Other generative AI uses include accelerating research in fields such as aerospace engineering, materials science, energy and drug discovery.
And companies like Darktrace use generative AI to analyze day-to-day business data to standardize new information and detect patterns that can indicate a security threat. This enables them to respond in seconds, contain threats and take corrective actions.
The Internet of Things
The Internet of Things (IoT) is revolutionizing our daily lives. From fitness trackers to connected thermometers, there are now many more ways to collect and analyze data to make better decisions.
The growth of IoT startups has also enabled new business models. Ride-sharing apps like Uber Eats, Grubhub, and DoorDash have proven the food delivery and transportation app model is sustainable.
Tech-driven lifestyle products are in demand, too, with personalization services like Nike’s “Nike by You” and “Nike Makers’ Experience” driving success. E-commerce innovations are boosting the retail sector, while blockchain and cryptocurrency technologies reshape finance and decentralize industries. And searches for climate-focused tech, agritech, and space solutions are rising. These are all good reasons to invest in startups that develop innovative IoT solutions for our future.
The Creator Economy
For decades, a handful of companies controlled the creator-to-fan pipeline, dictating what audiences saw and heard. But now, new tools and platforms have democratized distribution while providing monetization options. As a result, many content creators are migrating their audience bases from social platforms to owned channels where they can grow communities and build a direct relationship with fans.
Startups in this space include TikTok creators, Patreon content makers, eSports brands and music streaming services. But this trend extends beyond content creation. Customization of products and services is also growing in popularity, as seen with Son of a Tailor’s made-to-order shirts, Indochino suits, and custom stickers, labels, magnets, and pins from Sticker Mule.
Other 2023 trends to watch include democratizing access to capital funding and the increasing priority of environmental, social, and governance (E.S.G) practices. Searches for “sustainable finance” are showing hockey stick growth.
The startup trend that’s here to stay is remote working. It’s an opportunity for startups to attract talent, keep them happy and productive, and reduce turnover rates.
Moreover, it’s a way to save on overhead expenses and maximize profits by eliminating unnecessary costs. This is why it’s important for every company to implement a healthy remote work culture, including providing industry-standard tools.
Startups that offer DNA testing, gene editing, and personalized medicine are gaining momentum. Meanwhile, those focused on sustainable food production and tech-driven agriculture solutions are growing in popularity. And, online learning and education startups are booming, thanks to the renewed interest in virtual classrooms, language programs, and professional development courses. These are just a few of the exciting startup trends to watch in 2023.
Startups leveraging digital acceleration techniques have seen increased growth. These include ecommerce companies that use machine learning to boost customer retention, reshaping how we shop online; and data analytics startups that help businesses discover insights like underperforming sales routes and population clusters without access to their products.
Electric vehicle (EV) startups are also on the rise, largely due to consumer demand for this type of transportation and venture capital investment. In a similar vein, food delivery apps such as Uber Eats, Grubhub and DoorDash have proven to be successful business models. Additionally, agritech and food startups are seeing growth along with eSports and gaming companies. In addition, startups leveraging 3D printing and innovative manufacturing processes are gaining traction. And finally, startups that provide mental health and wellness solutions as well as eco-friendly and sustainable technologies are gaining traction.