The global tech startup market is one of the largest and most lucrative in the world, with the US and Southeast Asia particularly dominant in this space. The US is currently the largest tech market in the world, with an estimated cumulative value of $1.6 trillion at the end of 2019.
The reason for this is simple; as technology plays an increasingly integral role in effective management, the reduction of bureaucracy and the rapid delivery of solutions to everyday and operational challenges.
In this post, we’ll appraise the importance of technology and the most active startup tech markets, while asking what the best option may be for aspiring entrepreneurs in the digital age?
The Importance of Tech and the Most Active Startup Marketplaces
As we’ve already touched on, technology has helped to revolutionise the commercial world in a number of different ways, while enabling businesses to adopt a more holistic and seamless approach to managing different commercial aspects.
For example, technology has made it easier than ever before for businesses to communicate effectively with customers, while also enabling firms to empower remote workers and create a more productive (and cost-effective) workforce.
Interestingly, this also ties into the way in which technology has streamlined everyday business operations, with bespoke and streamlined delivery options being made available to customers across the globe. Another prominent example exists in the form of websites, which have helped consumers to find information more easily and within a matter of moments.
Of course, these benefits are important, as they help us to understand the key startup tech markets that are currently the most in-demand and active.
In the current market, there’s no doubt that fintech is one of the biggest areas of growth and startup innovation, with this global and fast-evolving marketplace expected to be worth $26.5 trillion by 2022 (with a CAGR of approximately 6%).
This market is characterised by technologically advanced financial solutions, while it’s being driven by widescale demand from banks and traditional fiscal institutions.
Historically, these entities have been weighed down by bureaucracy, human error and complex administrative processes, but many fintech solutions are specifically designed to tackle the issues and improve efficiency for the benefit of both businesses and consumers.
Where Should You Launch Your Venture?
There’s no doubt that fintech represents one of the most viable startup markets for tech entrepreneurs in 2020, while innovative ecommerce ventures and remote communication tools also offer value in the current global economy.
However, one the main challenges with such businesses is the need for advanced technological expertise, particularly in terms of software development and the cost-effective development of a viable product,
Not only this, but the fact that most aspiring tech startups maintain a global focus also poses significant issues to entrepreneurs.
This is thanks largely to the complexity and variation of international laws, with the regulatory approach in countries such as China entirely different to that of the UK and the US.
This has been borne out by the recent challenges facing Chinese social platform TikTok, which recently came under fire after it was accused of harvesting data from international users. This saw the US propose a nationwide ban, while a potential acquisition by Oracle and Walmart has recently been shut down by the Chinese authorities.
Of course, many of these legal issues can be overcome by liaising with experts such as Withers, who can offer an insight into specific international markets and propose viable solutions.
It’s also important to research international markets before looking to scale a new startup, as this holds just as much value as identifying a startup opportunity in the first place.