How a tech startup went from ‘no one’ to a $100M startup
The rise of an emerging tech startup has left a number of entrepreneurs struggling to stay afloat, and the problem is even more acute in 2017, says a new report from Next Big Futures.
In 2017, tech companies have seen their value soar by nearly 40% compared to 2016.
The rise is largely due to the rise of cloud-based services like Uber and Airbnb, which have enabled them to raise large sums of money in an incredibly short period of time.
And, more significantly, many of these companies are now able to tap into vast amounts of consumer data to create new products and services.
However, for many, this is not the end of the story.
The report points out that, while companies like Airbnb and Uber are increasingly popular, many are also finding themselves in a tough spot, as their revenue and profitability are not always sustainable.
For example, one of the most famous examples of this is Next Big Things, a company that raised a $30 million seed round in 2015, only to fail to cash in due to a lack of funding.
This raised $2.5 billion in funding from a range of VCs and large companies, but its failure to deliver on its promise was not helped by the fact that it had to raise $1.5 million from investors in order to do so.
As a result, the company has been forced to raise a substantial amount of money from a number other sources, including the US government, in order for it to get off the ground.
But as the report points this has not been enough to make up for its failure, and in 2019, Next Big Thing went bankrupt, with an estimated valuation of $35 million.
It is not only the tech companies that are struggling to survive, but also the non-tech industries in general, with the report noting that, although most of these industries are struggling, there are still plenty of people who are doing well in some of them.
For example, more than two-thirds of all workers in the hospitality and retail industries, for example, have seen increases in income in recent years, and one in six of all new jobs has been created in the industry.
As we enter the next five years, we need to ensure that tech companies do not become an opportunity for the world’s poorest and most vulnerable people, and we need them to remain resilient in their pursuit of profits and growth, says Next Big Ideas chief executive and founder John Kelly.
As these sectors continue to grow, and as they grow faster than the rest of the economy, we have to take a more holistic approach to tackling poverty and inequality, he said.
In the meantime, some companies, like Spotify and Uber, are investing heavily in developing technologies that will help them reach their potential.
This is great news for the millions of people currently relying on these services, but, as the company notes, we also need to take action in order that these innovations can also be made available to the many people who cannot afford to pay for them.
“The technology that is currently available to these companies is a fraction of what is needed to address the root causes of poverty and income inequality in the world,” said Kelly.
“We must ensure that the solutions to poverty and inequalities are affordable, accessible, and secure for all.”
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