New startups will need to invest billions of dollars in order to grow quickly, with some seeing their value plummet if they don’t.
According to a new report from Technavio, startups in the space of five years are projected to spend $12 billion on hardware, software and services, an amount nearly twice as much as they spent last year.
That’s an increase of nearly 40 percent from the $8.4 billion that was spent in the same period in 2015.
In a bid to stem the tide, the report suggests the next wave of tech startups could take a different tack and build their own software.
For the first time, Technavios report breaks down the industry’s revenue potential for the next five years and outlines the ways that companies could invest that money in building their own business.
For example, if a company wants to build a platform for selling mobile apps, it could instead use its own software to build the platform.
This could help them scale faster, the researchers write, because it allows them to charge less for the app, which could ultimately lead to higher revenue.
The report also identifies the next major trends in tech: a growing number of companies are trying to solve the real-world problems they’re building solutions to with their products, and a growing share of them are building new products based on those solutions.
One of those new products is blockchain, a way for companies to digitally share and control information that could be used to streamline their operations and increase transparency.
Technavino found that the most successful startups in this space are building products that integrate blockchain technology, which makes it easier to record, verify and share data.
“While the market for blockchain products is still nascent, we believe that a new trend is emerging,” the report states.
For the full Technavinos report, see the full article here.”
There is no question that blockchain has become an important tool for new companies and organizations to access the vast amount of information and data that is currently inaccessible by traditional means.”
For the full Technavinos report, see the full article here.