Founding a tech startup requires extreme focus, research, and optimization.
Between customer service, budget tracking, marketing, sales, and product development, it can be difficult to stay on top of all the latest industry advancements and innovations. This year, the best startup founders will routinely survey the tech landscape to identify and harness the power of the latest technological trends and discoveries.
"Staying on top of trends is key to any startup’s success. Spotting trends early makes it possible to come up with smart startup ideas — or modify your startup plans to jump on a new trend just as it takes off," says Rieva Lesonsky, contributor at ReadWrite.
Achieve accelerated results by staying abreast of the latest trends. This year, the best startup founders will utilize the following growth trends to scale at a higher velocity.
Top 4 Trends Founders Need to be Aware of in 2018
1. Shift in Purchasing Power
Did you know there are now more millennials than any other generation in existence? As the generation continues to mature into adulthood, its purchasing power will only continue to increase. As reported by Nielsen, the young demographic spends more than $65 billion per year.
Lifecycle Marketing recently surveyed more than 1,000 consumers. The group used this information analyze consumers' purchasing habits, marketing preferences, and more. Here's what their study revealed about millennials:
- Millennials prefer to receive communication by email.
- Millennials exhibit more brand loyalty than any other generation.
- 79 percent of millennials have purchased something from Amazon within the past 30 days.
Tech startups who prioritize customer service, brand transparency, email marketing, and other millennial preferences will benefit from this shift in purchasing power.
"No one can deny millennials’ proclivity for technology. This age group has had access to the Internet since childhood and cell phones since high school, and they were the first to adopt the social networks that now shape our cultures. They are technology natives through and through. This innate comfort with tech makes them highly prepared to take on industries like the Internet of things," argues Deep Patel, contributor at Forbes.
2. Greater Reliance on Crowdfunding
Crowdfunding has revolutionized the world as we know it. For the first time in history, anyone with a great idea can achieve financing without having to approach a bank, traditional investor, or grant provider.
Mainstream platforms like Kickstarter now directly link entrepreneurs and consumers, and equity platforms like Crowdfunder now connect entrepreneurs with non-traditional investors. With the rise of these and other popular crowdfunding tools, startup founders can now position themselves in front of more investment sources than ever before. These platforms allow even the smallest tech startups to acquire significant financing.
However, crowdfunding may not be the best approach for every tech startup. Complex variables like legal implications, capitalization table management, and platform regulations must all be considered. Regardless, expect both little-known angels and top-tier VCs to scour crowdfunding sites in 2018.
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3. Premature Growth Prevention
The Startup Genome recently publicized a study analyzing more than 3,200 high-growth technology startups over a six-month period. The study sought to answer the question on all of our minds: Why do more tech startup fail than succeed?
According to the study, 70 percent of tech startups fail due to premature growth. Tech startups routinely overextended themselves before knowing what would ultimately work in terms of MVPs, target demographics, and hiring. The key to ultimate success appears to be maintaining enough capital, and awareness, to pivot as needed.
The study found startups who pivot once or twice raise 2.5 times more money and have more than 3.5 times more user-growth. Founders are approximately half as likely to scale prematurely than those who pivot more than two times or not at all. Tech startup founders can reduce the likelihood of over-extension by setting realistic goals, spending responsibly, and making smart hiring decisions.
4. Niche Coworking Spaces
Finally, an increasing number of tech startups are choosing tech-centric coworking spaces as opposed to general coworking spaces. Niche coworking spaces will continue to grow in popularity over the next year for two reasons:
- Niche coworking spaces are often more profitable for space owners.
- Niche coworking spaces significantly accelerate member progress.
Without needing to appeal to a wide audience, these coworking spaces can focus on developing industry-specific resources that propel members forward. On tech campuses, that means creating workshops around topics like equity growth financing, content marketing strategy, and trademark law.
Tech founders are increasingly going for niche coworking spaces. From the tech-specific networking events to greater community support, coworking teams have made more opportunities for collaboration. At a niche coworking space, founders are surrounded by professionals with similar focuses and objectives.
Follow the Right Trends
Marketing to millennials, exploring crowdfunding options, preventing pre-mature scaling, and taking advantage of niche coworking spaces are trends most tech startups can benefit from pursuing in 2018. Are you looking for a way to stay ahead? Join an industry-leading tech community!
RocketSpace members enjoy VIP access to monthly Tech Talks hosted by industry luminaries, CEO Roundtable Discussions, and various networking opportunities. Are you a technology startup with Seed to Series C funding and an MVP in place? Stay at the forefront of tech trends by surrounding yourself with tech innovators at RocketSpace.