The numbers for startup success aren't great. According to Mashable, 50% of all businesses will fail within four years of operation. The number of startups that are going to become the next Facebook can be counted on one hand. But you don't have to reach for the stars in order to be considered a success.
There are many startups that will do great things without becoming billion dollar companies. This article is going to take a look at the seven startups you should be watching in 2016.
Discovering new products is a challenge because there are so many companies all competing for eyeballs. Blogger Ryan Hoover started his website to search for cool and new products. It started out as an email list, but it's quickly grown into a business hub.
Within a year of launch, the site gained millions of users. Product Hunt has raised $7.1 million from venture capitalists, so 2016 will be the make or break year for this company.
Dashers are about to become a part of your vocabulary. In a way that's similar to Uber, this food app will allow you to place orders from wherever you happen to be. The difference is this is related to the food industry. You can receive food from local restaurants in over 250 cities around the US and Canada.
This has managed to gain $60 million in investment, including from Dunkin' Donuts and 7-Eleven. These companies will expect to see a return on their investment.
Shopping at huge centers like Sam's Club and Costco can be hard for those who live in big cities. But if you want to grab some wholesale goods you can with Boxed. This eCommerce business allows customers to buy household items in bulk. You don't have to pay any membership fee or wait in a long line.
It's gained $100 million in serious investments. This could make a difference when buying wholesale because it brings the warehouse to you.
It may be hard to park your car in the middle of a busy city. Luxe Valet is a smartphone app that will allow you to find a valet in your chosen city. For a few dollars, they will find the parking spot for you. Pay extra fees and they will even clean the car, change the oil, and fill it up with gas.
You pay by the hour when using Luxe Valet's services.
Medium is a social publishing hub for people who need to publish content in all niches. This was an invite-only platform until 2013 when it opened its doors to all. The company is currently working on monetization through providing sponsored content.
Only time will tell whether it manages to become a serious profit-making business or not.
Classivity was a failure. Nobody booked through its gym membership platform. But it's reinvented itself through offering a one-month pass to try up to ten different classes in their local studios. The company has managed to get itself off the ground.
Google Ventures took notice and invested in the company. It currently employs around 300 people. In 2016, it hopes to continue its winning streak.
Beepi is a startup bringing buying and selling used cars into the 21st century. You can now sit at home, browse a lot full of cars, and make a purchase. This service was launched a couple of years ago and hasn't stopped growing since. It's achieved an incredible 20% annual growth rate.
This is simply an app, but it puts this business entirely online. Furthermore, investors love the idea because $149 million has been pledged to it in investment.
How Many Will Succeed in 2016?
The startups gaining the investment and making a name for themselves are those in the tech industry. Investors want to concentrate on the future and the future is in technology. Very few of these ideas are actually unique. They concentrate on simply moving a common daily task to the online arena.
Most successful startups don't try to change what people do. Instead, they try to change how people do it. To customers, they have the prospect of taking a task and making it both easier and cheaper. What could be better than that?
There's no telling whether these startups will go on to achieve their goals. But they have all received backing from large numbers of investors. All of them can't be wrong.
Which startup on this list do you think will be the most successful this year?