2022 has been a bit of a mixed bag for startups worldwide. It started with a big bang of post-pandemic euphoria and the VC market was deploying capital left, right and centre. Indian startups leveraged this positive market sentiment and raised huge investments, creating many unicorns.
This year also saw a few pioneers of the Indian startup ecosystem (Paytm, Zomato, Nykaa) go public on Indian stock exchanges resulting in mixed to disappointing results. With the global economy poised for recession, a huge round of market correction in the second half and a funding winter set in, affecting the eco-system. Raising money became more difficult for startups as investors took a more cautious approach as the focus moved from growth to sustainability.
As we approach the end of 2022, it is time to look ahead to the startup trends that will shape the world of entrepreneurship in 2023. The following are key developments to watch for in the coming year.
1. Financial Sustainability: A direct result of the funding winter, startups with viable business models and a path to sustainability will have an edge in raising money. The era of growth at all costs has come to an end and startups will focus more on being cash flow positive and sustainable.
2. AI & Automation: Automation and artificial intelligence are becoming increasingly important to businesses of all sizes, and startups are utilizing these technologies to improve their operations. We expect to see even more startups utilizing AI and automation in 2023 as they automate mundane tasks, streamline processes, and increase profitability.
3. Blockchain Tech: Despite the crypto markets tanking in 2023, blockchain technology is seeing its moment in the sun, as more companies explore how it can be used to improve operations, build secure transactions, and develop innovative products. As businesses use blockchain technology to create new solutions, we expect to see more startups leveraging the technology in 2023.
4. API-first: API-first startups will continue to grow, enabling businesses and enterprises to leverage focused core services to create products, optimize business processes and more. Many of these will take the shape of SaaS companies and continue to deliver value for companies, enabling collaboration, security and maximizing output.
5. Low code/ No-code: Low code/ No-code platforms continue to rise. This will continue for the next few years. With more and more skilled professionals opting out of the job market and looking at being a part of the gig economy, these platforms will continue to lower the expertise bar for users and enable them to build products and platforms more quickly and efficiently.
6. Social Entrepreneurship: In recent years, Social Entrepreneurship has been on the uptick, where entrepreneurs build businesses to positively impact society. Social entrepreneurs will use their businesses to address global challenges, such as poverty, climate change, and inequality, in 2023. Some areas of interest will be climate tech and social big data firms.
These are some of the trends that will define the startup world in 2023. As the year progresses, we can expect to see even more innovative developments that will shape the future of entrepreneurship. We will see more startups embracing these latest technologies and leveraging them to create innovative solutions that will improve the lives of people around the world. The future of startups is bright, and we can’t wait to see what the future holds.