Startups: The Go-To Source for Innovation?

In a world of rapid technological change and disruptive innovations, many organizations are looking towards partnerships with startup companies to unveil new products or service offerings that differentiate them from their competitors.

CBInsights recently published research on what it has identified as “game-changing” startups, or “high-momentum companies pioneering technology with the potential to transform society and economies.” In 2017, the following categories are poised to alter the status quo and bring us unheard of solutions to today’s challenges:

• Next-Gen Computing: the future of date storage + computing
• Advanced Prosthetics: tools to augment the human mind and body
• Mobility: new approaches to transportation and logistics
• Synthetic Biology: engineered biological products
• Computer Vision: the application of AI to interpret and act on visual data
• Drug Discovery & Diagnostics: software and AI to improve R&D and more accurately diagnose conditions
• Connectivity: innovation in networking and communications
• Geospatial Data: startups collecting data sets to better understand the physical world

According to CBInsights, in terms of deals and dollars deployed, in 2016 investments by the general venture capital industry slowed; however, 2016 was also the year that most of the financing to game changing startups occurred, an estimated $940 million.

While investing in a “unicorn” startup can yield high returns, a startup investment is often high-risk. How can you insure that you are investing in a company in which you will receive returns? One Thousand Angels is a platform that enables venture investors to build a diversified portfolio of early-stage startups. The platform offers a Startup Investment Return Calculator which helps potential investors estimate returns.

And of course, conducting an analysis of the market potential will always assist in determining whether an investment is solid. Understanding growth projections, demand trends, and complexities within the industry will help in assuring that a high-risk investment, becomes low-risk, high-reward.