A prediction of what startups will look like in 2024.
As 2023 draws to an end, entrepreneurs prepare for a new year of relentlessly pursuing expansion, financial success, and investment. Having survived the worst of the worldwide economic downturn, the founders can anticipate a somewhat simpler year. Goldman Sachs predicts that the global economy will do better than most anticipate, with a significant slowdown in inflation and an average annual growth rate of 2.6% for the global GDP in 2020 as opposed to the 2.1% previously projected. Founders will still be suffering the effects of the economic downturn in 2024, so they need to continue to remain ahead of the curve. Thus, the following startup trends are believed to shape the upcoming year
Enhanced AI Integration
While many speculate that the excitement surrounding AI may soon fizzle out, particularly in light of Sam Altman’s abrupt resignation and subsequent reappointment as CEO of OpenAI, the truth is that generative AI has already fundamentally altered the way that modern businesses run. PitchBook reports that in the third quarter of 2023, financing for AI businesses increased by 27% globally, despite a 31% decline in overall startup deals from the previous year. AI has permeated every sector of the economy, increasing output and streamlining operations. AI-related enterprises are becoming more and more prevalent both domestically and worldwide. Even non-AI firms and organisations are increasingly incorporating AI into their operations, from chatbots like ChatGPT to AI being used as a customer support tool.
The Micro-Influencer Market’s Growth
The emergence of short-form content and actively monetised platforms like TikTok has led to a notable surge in influencer marketing. Although influencer marketing has been around for as long as celebrities have, a whole new and huge class of micro-influencers who assist in product and service marketing is emerging from the social media environment of today. Someone with between 1,000 and 2,000 followers on any one social media platform is considered a micro-influencer. Startups, particularly those that lack the funds to hire influencers, turn to micro-influencer marketing techniques to draw in new clients from various and otherwise unreachable demographics, especially the rapidly expanding Gen Z market.
Startups, particularly those that lack the funds to hire influencers, turn to micro-influencer marketing techniques to draw in new clients from various and otherwise unreachable demographics, especially the rapidly expanding Gen Z market.
Growth in Remote and Mixed Employment
The majority of remote and hybrid workers choose to continue using these work modes, despite the popular call for a return to the office. A study by ADP research reveals that two-thirds of the study sample said they would begin seeking another employment if their employer demanded that they work in the office full-time. That’s not all, though. Leading research by International Workplace Group (IWG) shows that 95% of HR experts believe hybrid work is a useful recruitment tool, and 88% of workers see hybrid work as a top perk they would expect in a new career. Many businesses have discovered that coworking spaces, which provide the flexibility needed by today’s workforce, are an affordable answer.
Realistic Use Cases Replace the Hype Around AI
According to Crunchbase, AI businesses received more than one in four of the dollars invested in American startups this year – more than twice as much as the previous year. A few megadeals, like the USD 10 billion investment from Microsoft in OpenAI and the USD 4 billion investment from Amazon in Anthropic, the company creating the AI-powered chatbot Claude, were significantly responsible for this. Numerous articles have been written about how AI tools could increase productivity, lead to widespread automation, and possibly even take the place of human labour. However, the ‘peak hype’ for AI might be over, just like it was with blockchain and cryptocurrency in the past.
For startups like Mistral, innovations in the VC funding model, specifically, GPU debt funds – payments in computer processing power, mean 100 million dollars in equity pre-seed stages. AI is no longer visible since the main use of capital is to purchase processing power. As the expenses of operating Large Language Models (LLM) begin to rise, coupled with lawsuits and restrictions around their ethical and responsible usage with regard to data privacy and protection, intellectual property, and other issues, we may witness a reality check for AI next year.
While 2023 has seen a lot of chatter about AI, 2024 will see the emergence of more focused, if not straightforward, application cases. For instance, AI application cases will be seen in finance for fraud detection, algorithmic trading, and credit scoring; in manufacturing for predictive maintenance and quality control; in healthcare for diagnosis, treatment optimisation, and patient management; and in addressing environmental challenges, ranging from energy efficiency to wildlife conservation. The main hurdle will be overcoming the data obstacle, or figuring out how to get enough data and abide by rules so that certain use cases may be implemented.
Information Advancements Regarding Digital Health
The healthcare industry has been slower to digitise than many other industries because of its complexity, regulatory issues, and structural issues. Furthermore, even though digitisation sped during the epidemic, many of the most significant innovations, like workplace wellness and teleconsultations, have already fizzled out. However, issues with healthcare persist, and the ageing of the world’s population keeps attention focused on meeting growing demands.
Today, a plethora of technologies, such as AI, therapeutics software, and predictive analytics to support early intervention and offer diagnostic and treatment suggestions, are accessible and have the potential to completely transform healthcare. However, adoption is continually constrained by the constant juggling act between cost savings and technological implementation, as well as implementation and integration issues and utilizing the massive amounts of data, considering data protection laws like GDPR.
While 2023 has seen a lot of chatter about AI, 2024 will see the emergence of more focused, if not straightforward, application cases.
The adoption of federated data platforms, which enable the sharing of patient datasets across silos and foster a boom in collaborative research and personalised care, may mark a turning point in the next year. Vastly better multi-modal AI models will result from advances in the underlying data systems and dataset harmonization. Low-risk, back-office use cases like transcribing, pre-authorisation, and medical coding will see their first adoption.
Cross-border And B2B Payments
Since the use of cash has decreased and FinTechs have created creative new methods of transferring money, payments have experienced tremendous development in the last few years. However, more has to be done, especially with regard to B2B and international payments, which are still costly, time-consuming, and slow for a lot of organisations. Additionally, quick and inexpensive payments are more crucial than ever to control cash flow and spur expansion in light of the present economic difficulties. A plethora of up-and-coming firms are investigating novel and inventive methods to expedite the procedure through the use of borderless technologies such as blockchain, digital wallets, and stablecoins. In the upcoming year, this sector is probably going to continue to be strong, and we might also see the application of AI to use payment insights in order to boost productivity, improve customer service, and lower fraud rates.
For entrepreneurs, 2024 is expected to be a momentous and transformative year. The startup scene is changing quickly, with fintech, sustainability, AI, and digital healthcare leading the way. There are countless chances for creative and progressive entrepreneurs when these trends come together. In this dynamic world of startups, being ahead of the curve, utilizing AI, and accepting these changes are essential to success. For entrepreneurs hoping to prosper in a business environment that is changing quickly, navigating the difficulties presented by economic changes and embracing these new trends will be essential.
