As 2019 winds down, it’s an ideal time to investigate the 2020 startup trends that seem likely to shape the landscape in the coming year. Here are six of them.
1. Entrepreneurs Getting on Board With Business Intelligence Tools
Often-cited statistics mention how the odds seem stacked against startups that hope to get established in long-established industries. Many shut down in a matter of years. Numerous factors could cause those closures, but startup founders might have more warnings about their company being on track to fail if they used business intelligence (BI) software.
Today’s startups can access a wide variety of BI tools to facilitate better decision-making. Forward-thinking entrepreneurs will realize they must take advantage of some of those offerings in 2020. The increased availability of those tech tools boosts the likelihood of people using them. It also means those who decide not to will be at more of a disadvantage.
2. An Emphasis on Sustainable Products and Methods
Startups need to figure out how to capture attention with what they offer, and evidence shows sustainability could play a role in achieving that feat. A 2019 Accenture survey polled 6,000 people in 11 countries, and the results showed that 83% believe it’s essential for companies to design reusable or recyclable products.
Additionally, 73% of those queried said they buy more sustainable products now than five years ago. Another factor that’s important for startups to know is that more than half of those surveyed were willing to pay more for sustainable products they can recycle or reuse.
An Israeli startup called UBQ Materials has a fascinating approach to sustainability because it uses a process that converts garbage into raw materials for plastics manufacturers. There’s also The Greater Good Fresh Brewing Company. It recently completed a successful Kickstarter campaign to ship premium beer to a person’s doorstep in a slender container for them to make the beverage at home. This arrangement reportedly reduces packaging by 70%.
People should expect other startups to keep making waves by changing what’s possible with sustainable practices. Then, it should be easier for those companies to receive funding and public interest.
3. More Startups Offering Alternative Payment Methods
Another one of the 2020 startup trends to watch centers on startups compensating their employees through alternative payment options. Those could help a startup stand out as it aims to appeal to prospective employees.
For example, an employee stock ownership plan gives employees annual contributions in both cash and stock. Holding stock ownership could help a startup employee feel more invested in a firm’s future.
More startups are paying their employees in cryptocurrencies. Some even rely on a startup to help them do it. More specifically, a startup called Bitwage helps companies compensate their workers in cryptocurrencies. It recently added Ether as a compatible cryptocurrency with its service.
4. A Continued Interest in Offering Remote Work Opportunities
Analysts often point out that hiring a remote workforce makes a lot of sense for startups. If a company lets its employees work from home all the time, it could save money on things it’d otherwise need to buy, such as furniture and office equipment. Remote workers take care of necessities like electricity, tech gear and internet access themselves, which means employers can reduce expenses.
Creating these kinds of distributed teams can also allow startups to scale up faster because they can tap into workforces all over the globe, instead of focusing on the geographic area nearest to a firm’s headquarters. Remote work is not an entirely new trend concerning startups. However, it’s one that should continue to gain momentum in 2020.
5. The 5G Network Will Open New Opportunities
People are eagerly waiting to see how the 5G network will change the ways they use technology. The associated improvements will help startups, both by improving their operational connectivity and paving the way for them to develop advanced technologies that need the 5G network to function well.
Vodafone, a telecommunications operator in the United Kingdom, recently opened an innovation hub to help organizations ” and startups, in particular ” understand more about how 5G works and what benefits it offers. The facility has a co-working space, plus gives visitors chances to talk to experts about ways to implement 5G to help a business grow.
Other brands will likely follow suit. Getting ready for 5G requires significant investments, and a high adoption rate from startups could help those costs pay off for 5G providers.
6. More Startups Will Use or Create Voice-Based Technologies
Many people have voice-activated technologies to use that are as close as the nearest smartphone. Various startups want to bring voice recognition tech to them in other ways.
For example, chain restaurants are partnering with startups to get voice-powered menus. Or, there’s Handoff Tech, a Colorado startup that lets people order alcohol through their smart speakers by uttering a sentence or two.
A recent merger of two artificial intelligence startups could facilitate a scenario whereby voice recognition technology helps diagnose diseases. The company wants to identify vocal biomarkers that could indicate a health problem. Voice technology is big business, and companies are ready to capitalize on it in 2020.
These 2020 Startup Trends Are Worth Watching
The six areas covered here are not the only notable changes for startups. They’re among the most promising, however.
