Thursday, December 27, 2012

The Top 4 Tech Startup Trends of 2013


1. Our phones are becoming our remote controls for life. If we have a need for it in our daily lives, there should and will be an icon and app for it on our phone. It’s as simple as that. Our phones are our emergency kit for first-world problems.
Whether it’s a taxi or a ride in the rain (UberLyft), a mechanic (YourMechanic), a doctor’s appointment (ZocDoc), the literal remote control (AppleTV), a personal assistant (Exec), a cake-baker (Zaarly), groceries (Instacart), or you’re getting a little chilly and want the temperature in the house turned up (Nest), our phones are the concierge. I expect this phenomenon to continue in 2013 and as we run into times in our daily lives when we don’t have an icon for it just yet. Someone will be working hard to create it.
I understand that many of these services are not rolled out across the entire country (much less the world), but trust me when I say that the convenience these services offer blows my mind every time I use them.
2. Crowdfunding behavior will spill beyond their silos. We as Internet consumers are becoming increasingly comfortable with a new, or some would say, a very old, style of commerce. It’s one where a patron, client or customer purchases something that doesn’t exist yet — a la Groupon (via bulk-buying and daily deals), Kickstarter (via crowdfunding a documentary or a hardware product into existence), or our own site, Crowdtilt, making ambitious group experiences possible. These new types of consumer models require money, a group of people, and a threshold of demand that must be met before the exchange is made. This communication through commerce makes a lot of sense for all parties: A seller is guaranteed demand before production and a buyer gets to take advantage of the de-risked production, getting a higher ticket item for a lower price than she or he would receive otherwise.
In 2012 we also saw massively successful crowdfunded projects like App.net andLockitron.com raise millions on their own, with commerce models borrowed from crowdfunding sites. In 2013, I think this commerce model will continue to spill beyond the silos that pioneered the models in the first place.
(Crowdtilt just launched the world’s first international crowdfunding API this month, so you can say this prediction is either completely self-promotional or that we believe in this trend so strongly we put our money where our mouth is by fostering it.)
Furthermore, we have hardware tinkerers coming out of the woodwork to blow us away with their inventions and innovative uses for inexpensive, readily available sensors. From things like Xbox Kinnect and Belkin’s Wemo Motion, to Fitbit and Jawbone’s Up, to replacements for standard cardboard board games (Sifteo), or startups like Wattvision (wattvision.com), sensors are being used in incredibly inexpensive and impressive ways.

3. Sensors, your time is now. In our pockets, we’ve got a device that can control, read and display information from the world around us — and it can do it all continuously and wirelessly.
And this doesn’t even include the contactless payment systems using NFC/RFID (“near field communication” and “radio-frequency identification”) readers and devices that we’ve been hearing about for a few years now. (RFID readers and devices are projected to triple in sales by 2014 and reach a world-wide market size of $20bn USD.
If smart devices like our phones, our tablets and the sophisticated console navigation systems in our vehicles are the brains, it’s time to give them limbs.
4. ‘Hollow Giants’ looking for business models (or suitors). Tumblr, Foursquare, Quora and Twitter are perceived as massive companies within the startup ecosystem. But in terms of revenue-generating businesses, they barely register on the radar. And since the Facebook IPO, social hasn’t really had the shine it once did within the public or private markets.
Do I think social is dead? No. On the contrary, I think the Web is still ripe for a more social experience, but I think that while these companies have proven they can get an audience, the time has come to see whether they can build a business off that audience or whether that audience is worth an acquisition by the likes of Google or Yahoo.
Whatever these massively funded and massively valued startups do in 2013, their behavior will likely be dictated by the need to prop up their massive valuations. This kind of pressure or challenge is nothing new for the founders and executives that got their companies to this point, but it will be interesting to see which direction each startup takes in the next 12 months.

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