Every day, thousands of startups emerge, with many falling under the category of tech startups. These companies aim to revolutionize the industry with their innovative ideas, but the reality is that the majority of them will fail due to various reasons. Despite this high failure rate, investing in tech startups can lead to huge payoffs, with the potential for becoming unicorns or even going public.
Tech startups are early-stage companies that focus on technology-based products and services. They are usually founded by one or a few individuals and funded by friends, family, investors, or crowdfunding.
A new tech startup is typically in its early stages and has secured funding ranging from pre-seed to series A or B. Companies with series C, D, or E funding, or those that have reached the IPO stage, are considered more advanced. Examples of successful tech startups include Uber, Airbnb, Netflix, and Meta.
With millions of startups globally, many are disrupting the tech industry in various fields such as e-commerce, HR, and B2B/B2C services. Fintech and AI are among the top industries for startups, with 60% of founders believing AI is the most promising technology.
