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The editors at Business MBA Degrees decided to research the topic of:
Start Me Up: What's Hot in the World of Startups
Startups are hot right now, especially in the tech world. It's a volatile place where dreams, and millions (even billions), can be made in a relatively short period of time, but those dreams can crash and burn even faster.
Hot Industries for Startups in 2013
- Social network game development
- 184: percentage - projected 5 year compound annual growth rate
- 32: percentage - 2013 forecast growth
- Virtual data rooms
- 16: percentage - projected 5 year compounded annual growth rate
- 16: percentage - 2013 growth forecast
- Online shoe sales
- 16: percentage - projected 5 year compounded annual growth rate
- 14.5: percentage - 2013 growth forecast
- 16: percentage of market share of two sector leaders Amazon (Zappos) and
- Footlocker - lots of room to grow
- Digital forensic services
- 12: percentage - projected 5-year compound annual growth rate
- 11: percentage - 2013 growth forecast
- $1 billion: current sector revenue
- Information-technology (IT) security consulting
- 10: percentage - projected 5-year compound annual growth rate
- 9: percentage - 2013 growth forecast
- Travel agencies
- 4: percentage - projected 5-year compound annual growth rate
- 6: percentage - 2013 growth forecast
- TV & home theater installation services
- .5: percentage - projected 5-year compound annual growth rate
- 4: percentage - 2013 growth forecast
- Translation services
- 2: percentage - projected 5-year compound annual growth rate
- 3: percentage - 2013 growth forecast
- $3 billion: current industry revenue
8 Startups to Watch
- 1. Pocket - a service that lets you save what you find on the web to watch and read on any device, anytime
- 2. Treehouse - affordable Technology education to people everywhere
- 3. Duolingo - a free language learning service
- 4. Storenvy - the only store builder and marketplace in one
- 5. Snapguide - a simple, beautiful way to share and view step-by-step how to guide
- 6. Gumroad - enables "creatives" to sell directly to their audience
- 7. Branch - enables a smart new brand of high quality public discourse
- 8. Medium - based on the belief that the sharing of ideas and experiences is what moves humanity forward
Where Are They Now? 10 Hot Tech Startups
- 1. Turntable.fm: music is better with friends - active but stagnant.
- 2. Shopkick: earn points at retailers simply by setting foot into a store - active and stronger than ever.
- 3. Airtime: video chat service - active with promising new updates.
- 4. Color: photo-sharing app for the iPhone - defunct as of December 31, 2012.
- 5. Highlight: a fun way to learn more about people nearby - active with gradual growth and upgrades in the works.
- 6. SCVNGR/LevelUp: mobile payments network - active and has managed to stay competitive by coming up with some unique initiatives.
- 7. Zaarly: local marketplace service for buyers and sellers - active and growing.
- 8. Delicious: social bookmarking service - sold off to Yahoo in 2005 and again in 2011 to AVOS. Currently still active, but its users struggle with the changes.
- 9. Diaspora: a more open social network where users own their data - continues to be very active since its success as the first major Kickstarter success story, raising 20 times the funding goal and generating tons of headlines. It continues to win tech awards.
- 10. Hashable: networking site - defunct as of July 2012, despite raising $4 million in 2010.
Startup Success Stats
- 30%: chance of a success in a second venture by an already successful entrepreneur
- 18%: chance of success for a first-time entrepreneur
- 20%: chance of success for an entrepreneur who has previously failed
- 45%: new establishments still alive after 5 years according to the Census Bureau
- 43%: new firms still alive after 5 years according to the Census Bureau5
- 46%: Twitter's chance of success in 2009 (when it was 3 years old) according to the Wall Street Journal
Venture Capital (VC)
- Money provided by investors to startup firms and small business
- Perceived long-term growth potential
- Important source for startups that lack access to capital markets
- High risk investments with the potential for above-average returns
VC Stats
- $176.7 billion: committed capital by US venture capital firms in 2010
- 2,749: number of companies that received venture capital financing in 2010 - totaling $22 billion.
Angel Investors
- Individuals who invest in high-growth potential companies that will eventually be able to make a public offering or be sold to a larger firm
- Usually seek equity capital - often no less that 10 percent and charge a management fee in the form of a monthly retainer
- Funds typically range between $300,000 to $5 million
- Can be found around Universities, Business Incubators, Venture Capital Clubs, and Angel Confederacies
Recent Acquisitions
Yahoo
- PlayerScale (5/23/13) - software infrastructure for cross-platform gaming
- Tumblr ($1.1 billion, 5/20/13) - post text, images, videos, links, and audio to tumblog
- Loki Studios (5/12/13) - location based gaming
- GoPollGo (5/9/13) - a real-time polling tool
- MileWise (5/9/13) - tracks consumer rewards and figures out the best value
- Astrid (5/1/13) - a social to-do list
- Summly ($30 million, 3/25/13) - news aggregation app for smartphones
- Jybe (3/20/13) - personalized recommendations for places to visit and things to eat
- Alike (2/12/13) - location-discovery app for venues
- Snip.it ($10 million, 1/22/13) - "snip" content and share your opinion
Twitter
- Lucky Sort (5/13/13) - data visualization to explore emergent patterns in live text
- Ubalo (5/9/13) makes large-scale computing easier and more accessible
- Bluefin Labs ($80 million, 2/4/13) - enable clients to tap into data in social media commentary and connect it to the shows and commercials they watch on TV
- Cabana (10/18/12) a mobile app development environment
- Vine for ($30 million, 10/9/12) create short looping videos in a simple and fun way
- Clutch.io (8/13/12) builds tools to help with mobile app development
- In 2012, Twitter was the fourth-most acquisitive company, buying a total of 10 startups and ranking just behind Facebook, Google, and Groupon.
SourceS
- 1 - http://www.forbes.com/pictures/fgdi45fidk/8-hot-industries-for-startups-in-2013/
- 2 - http://mashable.com/2012/12/26/startups-2013/
- 3 - http://mashable.com/2012/10/09/startups-where-are-they-now/
- 4 - http://onstartups.com/tabid/3339/bid/79/
- 5 - http://smallbiztrends.com/2012/12/start-up-failure-rates-the-definitive-numbers.html
- 6 - http://blogs.wsj.com/venturecapital/2009/06/09/calculating-a-start-ups-odds-of-success/
- 7 - http://www.investopedia.com/terms/v/venturecapital.asp
- 8 - http://www.nvca.org/index.php?Itemid=147
- 9 - http://www.entrepreneur.com/article/52742#ixzz2UqVMVt4G
- 10 - http://www.crunchbase.com/company/yahoo
- 11 - http://www.crunchbase.com/company/twitter
- 12 - http://www.reuters.com/article/2013/05/13/idUS216767625120130513
