ENTREPRENEUR NEWS ROUNDUP: January 6, 2022
Predictions for the Startup Economy in 2022
Startups set new funding records in 2021 and revealed exciting new trends. Here’s what analysts forecast for 2022.
According to early reports, 2021 was a record year for startups. Last year, venture capital investment in the United States reached $329.8 billion, nearly doubling the previous high of $166.6 billion set in 2020. As you might expect, mega-deals worth more than $100 million drove much of this growth, accounting for $190.8 billion of total deals. PitchBook/NVCA will release its 2021 Venture Monitor next week, and we’ll look at the deals that shaped the early-stage funding landscape (angel, seed, and Series A) for our article next week.
In the meantime, Forbes, TechCrunch, PitchBook, and E.U. Startups (among others) have all released predictions for startups and venture capital funding in 2022. I encourage you to read these articles in their entirety to get some more interesting insights, but here are a few predictions that caught my eye:
Climate Technology
Analysts predict significant investment in carbon-neutral technologies. Companies that use AI and business intelligence to help other businesses increase efficiencies will be at the forefront of this. Companies that mitigate the effects of climate change, such as Direct Air Capture (DAC) to reduce CO2, are another area to keep an eye on.
Crypto & NFTs
In 2021, cryptocurrency and non-fungible tokens dominated the news, and analysts predict that trend will continue in 2022. One thing to keep an eye on as the market becomes more mainstream is how governments and lenders begin to regulate it.
Creator Economy
I wrote about the burgeoning creator economy a few weeks ago, and this trend isn’t going away in 2022. A.I. and no-code tools for creators to quickly and easily develop content are key trends to keep an eye on.
Startups to Watch
FloorFound
We’ve all experienced it: you order something from an online retailer, and when it arrives, it’s slightly damaged. You call the vendor, and they say they’ll send you a replacement right away, and you can keep the damaged one (in exchange for a 5-star review). Paying to return-ship, store, and repair that item is often more expensive than just accounting for it as sunk costs. However, two major issues arise as a result. First and foremost, what happens to the damaged item? Is it disposed of in a landfill? Is it just sitting around in someone’s garage? Second, what if that item is expensive, like a piece of furniture, and the cost of eating it is prohibitively expensive for the business? FloorFound, an Austin-based startup, is assisting vendors in managing returns for oversized items. When a customer wishes to return an item, FloorFound will pick it up, store it, and help resell it at a reduced price. FloorFound will also assist vendors in selling samples and displaying models, providing the end customer with a level of service comparable to purchasing new. The company has secured relationships with vendors like Burrow, JoyBird, Casterly, and Floyd Home. FloorFound recently secured $4 million in seed funding led by LiveOak Venture Partners, with participation from Next Coast Ventures, Flybridge, 8VC, and Schematic Ventures.
TendedBar
TendedBar has developed the first self-pouring automated bar for use in high-volume settings like concerts and sporting events. TendedBar employs an RFID wristband, which enables rapid age verification and consumption tracking, and its modular design allows for a flexible footprint and easy scalability. TendedBar’s pilot program with the Jacksonville Jaguars improved wait times and crowd control significantly, with customers served in as little as nine seconds per drink. TendedBar is also working on back-of-house solutions for bars and restaurants to help speed up beverage service by allowing servers to pour drinks as well as room-key controlled options for resorts and hotels. TendedBar recently raised $5 million in Series A funding led by BASE Capital with participation from Platform Ventures and angel investors.
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