All Financial Wisdom
The Founders of Dropbox and Airbnb See a New Revenue Stream
The dream of every investor is to know the success of your bets in advance. Guessing the future is not easy but there is a place in the world where that possibility is much closer to becoming a reality.
That place is the territory of Y Combinator, the start-up accelerator based in Silicon Valley. In Y Combinator you’ll find the beginnings of companies as successful today as Airbnb, Dropbox, Ebay etc… and all those that are now called unicorns (those that the market values in more than a billion dollars ).
In recent years, in addition, they share their knowledge with the sector by convening two stellar events a year. It’s what they call the Y Combinator Day. The place could be described as the paradise of startups. Of course, only the most fortunate can access it, those capable of surpassing the future radar of the experts of Y Combinator.
And there, angels and venture capital firms compete to be able to invest in some of the world’s most promising startups. It’s a lot like speed dating.
Businesses based on getting many customers and promise future profitability as they were in their moment Facebook, Twitter, etc. they seem to lose brightness. The power of Google and Facebook as the hubs of online advertising or duopoly, as Fortune magazine has called it, is driving the rest out of the market. Only half of all the advertising that moves on the Internet and 60% of the US. Any startup that starts now focused on getting profits via advertising has to fight with these titans and investors do not seem to trust that it will win the battle.
Now, the income statement
The companies that have attracted the investors of the Y Combinator Event in 2017 have been those whose activity is focused on providing services to other companies. That is, those who have found their business model in Business to Business, as explained in Quartz, of the 124 companies presented in event 41 offered services to large companies and businesses. The reason, according to the American news portal, is that founders and executives of Silicon Valley’s most successful companies are abandoning their original firms and betting on developing new software capable of more efficiently solving the problems faced by companies
In other words, the visionary entrepreneur is no longer able to create new market needs among consumers, as Airbnb or Uber could do, but what seems to be the most stuck in the coming years will be those companies that are able to facilitate management and work to other companies.
In addition, in line with what had already been detected in previous editions, investor interest has been refocused on startups able to ensure a faster return and do not need endless financing to succeed. More and more often, the companies selected by Y Combinator present business plans with terms of profitability and break even of just a few months.
By sectors, everything indicates that the largest source of business in the coming years will be in the world of Artificial Intelligence and biotechnology. They follow, according to the mentions made by the media that were present at the event: health, human resources, fintech, construction, education, games, transportation, insurance, drones, fertility plans and security.
With businesses as different as a company like Entocycle, that bets to end the hunger in the world producing proteins derived from insects.
Modular Science, which has introduced a robot capable of automating almost 100% of the vegetable production process, with modular machines.
PullRequest offers something that many companies expect as water from May, a technology capable of detecting the programming errors of the deployed applications. According to Fortune, the startups on their list spend about $400 million in these code reviews every year.
Among those that have caused more expectation, given the number of websites that refer to this company, Pyka is a startup that, while everyone debates about the future of the autonomous car, has gone one step further and has presented a mini plane to a single person who pilots alone.
But if there is one that transports us to the idea of the future of the films, that is Kestrel, and its intelligent fabric capable of adapting itself (as if breathing) to the conditions of cold or heat of the environment.
These are just some of the examples of what could be seen in the History Museum in Mountain View, California. For more details, see Techrunch.