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Why startups should rush into developing a digital product in 2021

Before the pandemic, the online landscape was in a continuous and accelerating growth. We live in times of the millennials and generation Z’s who’s habits developed towards online everything, so even if the transition was fast, it was also looking natural.

According to Google, Ecommerce in Europe is forecasted to be worth 621 billion euros by the end of 2019. This would mean an increase of 13.6 percent compared to the situation last year, when ecommerce was worth 547 billion euros.

       Lots of business went in online, but if you wanted to create a digital product from scratch then, it wasn’t easy to find financial sources, but not hard either - but you really needed to fit your product for some unknown needs, the market was oversaturated and people seemed to have it all – so you had to be extra creative for the potential investors to give you some kind of credit.

       But in this days, after pandemic hit the globe, the tech market raised in two years fifth times faster – not only that the new business and ideas found place, but also the old ones had been uplifted to the sky. Just look at the Zoom example. Also Google info, European eCommerce revenues jump 30% to US$465bn in 2021. The COVID-19-led boom in online sales has caused an impressive growth of the European eCommerce market, both in terms of revenue and the number of users.

The market needs are bigger now, and so are your possibilities of launching a digital product. You can make it useful, but it can be designated for fun or any other activities. Driven by needs, the pandemic created habits among people, including the ones who used to be “analogic”.

 

Where to find financial resources:

Reading this, and you being a smart one, you can easily deduce that also smaller tech companies compared to the past started to accept equity development contracts. Also big investors searched for European companies to help them expand all over the world.

So, if you have a good idea, but a lack of financial resources, you have the possibility to apply for loan at a bank – this is difficult because you require a background if you need a decent amount of money and you might not get it – or you may not have the possibility to start returning money as fast in time as they ask you too. This is just the surface, sure – there are more reasons. And we assume you are a startup, new in business.

If you are good, or maybe just lucky – you can reach out to investors for helping you develop your product. How does this investor look? Or, more specific, where can you find a possibility good for you?

       If the technical area is what you have a disability on, I suggest you to start looking for a tech company – these days, as I said, even the smaller ones started to accept equity contracts. This works like this: you give them your project to develop and also a share (a percent) of your company, as much as you negotiate with them.

       This is good for you, WHY?

-      If you just started, this company may be not only a good financial support for your business, but may also help you with other advices and knowledge like marketing tips;

-      You don’t risk too much, if a company with background trusted your product and invested in it (even if just time and human resources), you should feel safer to dive into the market;

-      Actions in your company are valuable, depends on how you established, but usually the time the company owes that percentage could be delimited and you could buy it back after a period of time;

-      It is easier and faster;

-      You may find a team to work with, more than just some investors;

-      You can collaborate with a professional team that you couldn’t afford from the beginning;

Hope you found it useful to understand the immense possibility you have in these days to develop your own digital product. We gave you the motivation to do it and also where to go for support in the area. All you need now is to get started!


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