In April 2020, Startup Genome released The Impact of Covid-19 on the Global Startup Ecosystem report showing that only 23% of startups could secure the funds and stay stable during the crisis induced by Covid-19. Whereas the pandemic negatively affected numerous startups, some of them hit the jackpot and succeeded during the hard times. Changes in consumer needs also had a big impact on how new startup areas were formed: shopping, work, entertainment, etc. completely switched to online. Let’s take a look at a few startups that have been positively affected by the pandemic and grew despite the circumstances.
Clubhouse is a social network where one can communicate only by voice (audio messages). A few months ago, the popularity of Clubhouse grew wild. There are a few reasons behind its viral success. First of all, global celebrities such as Elon Musk and Mark Zuckerberg began to talk about the app and use it. Clubhouse allows users to create discussion “rooms” and doesn’t save the conversations, which creates the fear of missing out. Another reason for FOMO at Clubhouse is its invite-only feature: you can’t simply register in the app, you have to be invited by an already existing user. All of this contributed to the fact that by February 2021, the app was downloaded by more than 9 million people.
QueenlyQueenly is a marketplace that helps individuals and small shops resell used clothes. The reason behind the startup’s fantastic success is the fact they allow women who don't have enough money to access clothing they could use for a prom or other occasion at a lower price. Reusing clothes is also a more sustainable way to consume: it helps to reduce waste, hence has a positive impact on the environment. Queenly has already received a total of $3.1 million in funding. Even though the event industry basically went to a halt during the pandemic, Queenly didn’t suffer any losses. On the contrary, the number of the company’s website visitors is growing by almost 1% every month, and so are the sales.
Clim8 Invest is a platform that provides an opportunity to invest in publicly listed companies that fight against climate change. This startup is very young (founded in 2019) compared to its competitors such as Tindeco or WeInvest, but in a short time, the amount of funding it secured, reached $13.4 million in 2021. The HSBS report shows that during Covid-19, the shares of companies related to climate issues increased by 7% compared to those that aren’t concerned about climate. Clim8 Invest allows you to make an impact even with small financial contributions. Given the fact that environmental issues gain popularity, so will the startup’s recognition.
Online recording platform Riverside.fm founded in 2019 and based in Tel-Aviv announced $9.5 million in funding in April 2021. Riverside.fm is an audio and video platform that allows remote recording of high-quality content. The end result doesn’t depend on the internet connection, therefore, your content will look great and sound amazing even if you’re experiencing connection problems. The platform's capabilities include a Smart Speaker View feature, which allows you to automatically switch between speakers when editing video and cuts background noise automatically. What makes this startup unique is the number of features it offers and easy UX.
Misfits Market is a delivery company founded in 2018 that has become known for its specific approach to product selling. In April 2021, the company’s funding reached $200 million. Misfit Market’s core product is a subscription box that offers products at a much lower price than in grocery stores. Most stores refuse to sell products that seem imperfect, or “ugly”, which makes it possible for Misfits Market to buy them from suppliers at a much cheaper price. The products might not look perfect, but they are fresh and environmentally friendly, as the company supports the idea of caring for the environment and encourages choosing products that are organic. Funding will enable Misfits Market to expand its product range and delivery locations.
Photos: Queenly, Riverside.fm