2020 for startups
- 2020 increased the number of new startups. Due to job losses, more people have launched their own startup. There are more founders in the market.
- 2020 also increase the number of fundraising. Money moves to great opportunities. Competition among VC capital investors has increased to get the best startups.
- When we will be looking back in 2030, we will count more millionaire startup projects born in 2020 and 2021 than have ever been created before. In the last crisis, 2008-2009, companies like WhatsApp, Pinterest, Uber, Airbnb, Slack, Groupon, Square have been launched.
- Despite the catastrophic effects, the crisis also brought opportunities. Huge destruction results in huge creation:
- Investor Bill Ackman: 2021 will be the best year ever to open a restaurant chain.
- Marc Cuban: 2020 was exhausting. But 2021, the post-vaccine era, is the opportunity year. It will get a strong switch to e-commerce.
- Venture Capital and Startup ecosystems disconnecting from geographical locations. This may be the beginning of the end of Silicon Valley. Silicon Valley can now be anywhere.
Generally, successful startups provides a new customer experience which is able to combine easy, fast and convenient with sustainability. Startups with a social purpose/philanthropic goal are more resilient because the founders feel a personal mission which helps them to resist against all difficulties.
- In average, investors spend 2,51min. for a pitch. So it cannot be wordy.
- Never tell the investors: “The market size for this product is X M€, so even if we can get only 1% of the market, we will make the turnover of Y M€.” > They hate to hear this. It only shows that you have no clue how difficult it is to conquer 1% of the market.
- Know well your competitors. Tell the investors what they do well, and what you will do better.
- After pitching, try to connect emotionally with the investors. Only talk afterwards about the details of your business. We are all human beings. Investors want to have empathy with the founders of a startup they invest in.