Startups are a dime a dozen in the world of modern business.
A lot of exciting startups do have great ideas, but the success of a startup is more than just having a great idea. Yahoo Finance mentions that as much as 90% of startups fail in their first three years of operation. If so, what do the 10% of them that survive and thrive have that make them unique?
The critical element that is present in all exciting startups is the presence of a demand for the product they supply. Inc. states that the most vital factor in a startup business’ success is its timing in entering the market. These top startups that we cover here are the perfect example of what happens when right timing meets excellent idealization.
Company History: Bumble notes on its website that it came from an idea in 2014 by its founder to empower women to make the first move in a relationship. From there, it has become a social media app that combines friend-finding and career-building into a single application.
Valuation: Currently, Bumble is seeking an IPO that Bloomberg expects will value the company at $1.1 billion.
Why is it a start-up company to watch in 2020: Bumble’s premise is an interesting one, turning tradition on its head and empowering women like no other application has tried to do before. With the changing social norms already affecting society and an app that caters to an under-represented sector of the population, Bumble is poised to make huge waves, impacting its already established competitors like Match and Tinder. It’s impending IPO also makes it an exciting company to keep an eye on.
Company History: With social media a significant mover in business’ interaction with customers, it’s only natural that a company would develop a means to allow businesses’ CSR’s to interact with customers through instant messaging. That application is Teckst, a B2B Software-as-a-Service application enabling companies to message clients in the interest of brand building and customer service support.
Valuation: Owler mentions that Teckst’s annual revenue is in the vicinity of $5.4 million.
Why is it a start-up company to watch in 2020: Teckst has partnered with a global communications business called Infobip to offer global companies the chance to experience its conversational texting interface. According to Marketing Technology Insights, the system will enable businesses that don’t have their own integration development capabilities to incorporate Teckst into their marketing system easily.
Company History: Developed as a biotech company to bring the wonders of exploring inherited traits, ancestry, and genealogy to all, 23andMe was established in 2006 and is already getting a lot of attention from media outlets and individuals alike. Its name comes from the 23 pairs of chromosomes in the human genome.
Valuation: According to Pitchbook, the company is attempting to raise up to $300 million in new shares, increasing its current valuation from $1.75 billion to $2.5 billion.
Why is it a start-up company to watch in 2020: A recent partnership with massive pharmacy business GlaxoSmithKline sets the stage for explosive growth in 2020 for the Mountain View CA. startup. Wired notes that this might have been the company’s plan all along, to aid in the development of new drugs using their collected genome research data.
4. Managed by Q
Company History: Founded in 2014 as a means to make office management easier, Managed by Q has seen adoption in a large volume of businesses. It simplified the way companies are managed, offering a single application for everything from office cleaning to supply chain logistics.
Valuation: Tech Crunch mentions that Managed by Q was valued at $249 million in January 2019.
Why is it a start-up company to watch in 2020: After being acquired by WeWork, Managed by Q is likely to see some additional business from businesses that WeWork already serves. Business Insider notes that WeWork made several acquisitions over the past year to expand their services, and Managed by Q is another of the companies that are likely to ride the rising tide that WeWork provides.
Company History: ClassPass came into being in 2011, a result of the founder’s frustration with finding and booking classes online.
Valuation: CNBC estimates that ClassPass holds a current value of around $470 million.
Why is it a start-up company to watch in 2020: Already a disruptor in the industry, ClassPass has gone one step further and developed a stand-alone app that runs on mobile phones. The application, according to Ladders, offers a unique way for professionals and people on the go to experience ClassPass. The app expands the reach of the application into new territory and is likely to increase brand recognition and subscription rates.
Taking On the World
A startup is a risk, and in a business where risks are punished heavily, it could spell disaster if the startup isn’t adequately timed and delivered. These startups have the benefit of entering the market at the right time and providing a service that the public wanted. It’s a simple premise, but a difficult one to execute. As 2020 draws closer, these companies are well poised to take advantage of their partnerships, mergers, and innovations to experience explosive growth, making them stand out even more from the competition.