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We are living in entrepreneurial times and new startups pop up every day. Business Strategy Review presents some interesting facts and stats on the startup scene. This was first published in Business Strategy Review, Volume 25, Issue 2 - 2014. Subscribe today to receive your quarterly copy delivered to your home or work place. http://bit.ly/BSR-subscribe
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© Copyright 2014 London Business School
Startup statsNumber crunching these
entrepreneurial times
BUSINESS STRATEGY REVIEW 2
It was a good start to the year for entrepreneurs looking for aprofitable exit. The number of initial public offerings in the USwas up 72 per cent on 2013 at 31 through the first two monthsof 2014, and 56 companies filed for an IPO. Healthcare andbiotech firms led the way, with the IPO action reminiscent of thedotcom boom in its heyday.
Sources: usatoday.com; moneymorning.com
72%
BUSINESS STRATEGY REVIEW 3
At its launch in April 2009, crowdfunding site Kickstarter had 40people pitch £648 for seven projects. Now approaching its fifthanniversary, 5.7 million investors have parted with over $1bn for57,000 projects. Investors are fairly selective: less than half ofthe entrepreneurs, about 44 per cent, raise their target amount.
Source: time.com
57,000
BUSINESS STRATEGY REVIEW 4
In 2014, licensed companies will be able to sell marijuana forrecreational use in the US states of Colorado and Washington. Itgives entrepreneurs a chance to roll up a share of a marketestimated to be worth £6.1bn by 2018. Banking may be anissue, though, as federal laws prohibit most banks from takingmoney from firms that grow and sell the drug.
Sources: bbc.co.uk; businessinsider.com; brookings.edu
£6.1 billion
BUSINESS STRATEGY REVIEW 5
Modern technology allows huge scope for instant entrepreneurialaction. Take the case of photographer Daniel Arnold. With just$90.03 in the bank, he offered Instagram followers a one-dayopportunity to buy a 6x4 print of any of his photos for $150. Hegot over $15,000 worth of orders. “It’s not like I’m any kind ofentrepreneur,” he reflected. “I’m a business idiot.”
Source: forbes.com
6x4
BUSINESS STRATEGY REVIEW 6
Good news for entrepreneurs living in parts of the world with nointernet coverage. Facebook is reportedly involved in a plan tobuild thousands of drones in an effort to beam the internet toplaces where no ISP has gone before. The unmanned aircraftact as satellites, circumnavigating the airways at 65,000 feet forup to five years continuously.
Source: techcrunch.com
Five years
BUSINESS STRATEGY REVIEW 7
June 2014 is the 40th anniversary of the barcode. Theubiquitous black and white striped label first appeared in a USsupermarket on a ten-pack of Wrigley’s Juicy Fruit chewinggum. Fast forward four decades and a wave of start-ups aremaking use of the barcode’s successor – RFID technology.
Source: economist.com
1974
BUSINESS STRATEGY REVIEW 8
The provision of software, infrastructure and platforms as aservice, via cloud computing, allows entrepreneurs to conductactivities ranging from accounting to marketing with minimalupfront costs. The cloud services market is expected to growfrom $37bn in 2010, to $121bn by 2015, according to researchfirm Markets and Markets.
Source: cloudcomputing-news.net
$121 billion
BUSINESS STRATEGY REVIEW 9
Competitions such as The Wearable Technologies InnovationWorld Cup 14/15, with its prize fund of $200,000, are all therage. It’s great news for entrepreneurs seeking idea validation,development resources, and influential corporate partners.
Source: innovationworldcup.com
$200,000
BUSINESS STRATEGY REVIEW 10
With 3-D printing shaping up as a new frontier for entrepreneurs,it is no surprise to see heavyweight corporations adding theextra dimension to their business. US-based start-up 3DLTrecently opened a storefront for 3-D objects on Amazon, part ofa pilot programme by the online retailer to make 3-D printedproducts more accessible for consumers.
Sources: fastcompany.com; amazonaws.com
3-D
BUSINESS STRATEGY REVIEW 11
With the right start-up idea it is possible to get very rich very quickly.In February, social media giant Facebook announced theacquisition of WhatsApp in a deal worth $19bn. Not a badoutcome for co-founders, and former Yahoo employees, BrianActon and Jan Koum, who started the messaging app firm in 2009.
Source: ft.com
$19 billion
These startup stats were published as part ofthe entrepreneurial special report in
Business Strategy Review
Volume 25 Issue 2 2014
Visit our website www.london.edu/bsr