Leveraging the Mega Trends
Leveraging the Mega Trends
Mega Trends = Mega Opportunities
Building for the Machines
Machines will empower a significant percentage of our lives in the future. Be it in the form of software or hardware. So why not build a startup for the machines?
Within this category, there are two areas of opportunity. Build a startup around:
Both categories are under-represented in the startup ecosystem.
Moving out of Expensive Cities
Coronavirus has accelerated business in a distributed environment. And this is an accelerating mega trend. Every week prominent startups and well-known large enterprises are announcing their headquarters relocation. This is a good time for startup founders to decouple capital from location. And gain other benefits. Founders can leverage their old connections and roots outside the expensive cities. My previous note, Best City to Start a Startup, discusses some factors that go into this decision.
Scratching the Corporate Itch
Large and traditional companies have seen market share erosion from high-growth startups. As a result, they have embraced various avenues for innovation. Two key ways to leverage this mega trend:
Targeting the Growth Markets
Emerging economies are on a growth path. They will take center stage in the coming decade. Some of them are huge markets for potential customers and talent. And startup ecosystems within these countries have many unicorns and good exits.
Two different methods that have worked:
Sharp observation and deep curiosity can uncover more trends. Some of them might be brewing within a specific country. Or within a particular industry. Or a certain segment of the society. Building a startup leveraging these mega trends adds serious momentum.
Related Notes:
Building for the Machines
Machines will empower a significant percentage of our lives in the future. Be it in the form of software or hardware. So why not build a startup for the machines?
Within this category, there are two areas of opportunity. Build a startup around:
- An underlying technology, or
- An underlying process.
Both categories are under-represented in the startup ecosystem.
Moving out of Expensive Cities
Coronavirus has accelerated business in a distributed environment. And this is an accelerating mega trend. Every week prominent startups and well-known large enterprises are announcing their headquarters relocation. This is a good time for startup founders to decouple capital from location. And gain other benefits. Founders can leverage their old connections and roots outside the expensive cities. My previous note, Best City to Start a Startup, discusses some factors that go into this decision.
Scratching the Corporate Itch
Large and traditional companies have seen market share erosion from high-growth startups. As a result, they have embraced various avenues for innovation. Two key ways to leverage this mega trend:
- Capital
- Corporate venture funds have experienced success in the last decade. As a result, the existing ones are increasing their fund sizes. New corporates keep joining the bandwagon. A well-structured corporate partnership can help a startup leapfrog their journey.
- Talent
- Many corporate employees want to enter the startup ecosystem. They can bring useful resources to bear. Since they lack previous startup experience, it seems like a closed world. With the right onboarding, smart founders can bridge this transition. A little effort in the beginning pays off later. Helps to play the long game.
Targeting the Growth Markets
Emerging economies are on a growth path. They will take center stage in the coming decade. Some of them are huge markets for potential customers and talent. And startup ecosystems within these countries have many unicorns and good exits.
Two different methods that have worked:
- Build a startup within one of these countries. After the U.S. visa rejection, Snapdeal founder decided to build his startup in India.
- Build a startup targeting users within these countries. WhatsApp calls San Francisco Bay Area home. Their highest user base is in India followed by Brazil.
Sharp observation and deep curiosity can uncover more trends. Some of them might be brewing within a specific country. Or within a particular industry. Or a certain segment of the society. Building a startup leveraging these mega trends adds serious momentum.
Related Notes:
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