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What trends show the types of startups that obtain funding
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What types of startups are tend?
When inflation increased towards the end of the COVVI-19 pandemic, central banks responded by increasing interest rates, which led companies to reduce their investments. Reduced funding has hardly reached the scene of startups: Crunchbase data show that venture capital invested only $ 285 billion In 2023, down its $ 643 billion in 2021.
Despite this slowdown in investment activity, the American economy remains strong. National production, measured by the gross domestic product, increased by around 2.5% in 2023 after taking into account inflation, while unemployment Sitting at around 3.9% in February 2024. These strong economic numbers, combined with recent progress in artificial intelligence, have left many optimistic investors about the future.
To understand what types of startups receive funding, Flippa Data used from Y combinatorA leading startup accelerator based in San Francisco, which was launched in 2005. The firm invests in companies at the start of the stage to offer mentoring and networking opportunities. Y Combinator’s portfolio is strongly focused on technology; Therefore, it may not perfectly represent the global economy. However, as the biggest startup accelerator, its investments give an idea of the place where things go.
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AI startups tend
An online graph showing that the share of startups supported by Y combinator focused on AI is developing.
Y Combinator has two “lots” per year: an organized in winter (roughly between January and March) and one in summer (generally between July and September). An obvious trend was the rise of startups working on AI. The launch of Chatgpt in November 2022 was exciting for investors and entrepreneurs, not because it was a new product, but rather because it announced a new wave of innovation in AI.
The data of its latest lots confirm the popularity of the AI. According to our counting, around 64% of startups supported by Y combinator in its 2024 winter lot contained the expression “artificial intelligence” or “AI” in the descriptions of their company, against 49% in the summer of 2022, just before The launch of Chatgpt.
Startups strive to integrate AI into a wide range of domains, many have focused on office labor productivity. A company builds tools to help people Legal document number; another is Help employees manage investor relations. A startup, available, even hopes to use AI for Transform film scripts into videos.
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Company companies in business are particularly popular
Graphics showing which segments are increasing the fastest for startups y combinator. B2B companies are particularly popular at the moment.
There also provides data on the sectors of their companies. In the last lot of winter 2024, 158 out of 235 (67%) The startups on the back of combinators were focused on the B2B – a strong increase compared to the lot of winter 2022, while only about half of the companies were oriented towards B2B. This change coincides with the rise of the AI: many founders bet in the short term, there will be more opportunities for companies to take advantage of AI than individual consumers.
Fintech has experienced a particularly significant drop in recent years. The decline is partly the result of investors and entrepreneurs who focus on AI, but another part is the bursting of the cryptocurrency bubble in 2022. The price of bitcoin has recently climbed, hitting a All the time greater than exceed $ 73,000 March 12, 2024, but the interest of consumers, as indicated by Google search dataStay below where it was in 2022.
The pace of technological progress has been so accelerated over the past two years that it can be difficult to remember that the current wave of AI development is still in its infancy. Many cutting -edge technological companies still have no clear visions in which their products finally go. In addition, it will take years, even decades, for more traditional companies to implement these new progress. This suggests that startups working to deploy AI today will have a lot of problems solving.
Edition of stories by Shannon Luders-Manuel. Copy edition by Paris Close.
This story originally appeared on Flippa and was produced and
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