Rankings show startups favor some buzzwords a lot more than others – Crunchbase News
As any buzzword lover will tell you, the words startups choose to describe their businesses change a lot over time.
This makes sense, as emerging tech companies are always focused on the next big thing. Usually, the words to describe what they do have only recently appeared.
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We turned to data from Crunchbase to get a feel for the hottest terms for startup company descriptions. The resulting ranking for trending tech terms examines criteria such as the number of company descriptions containing the term, the amount of money they have raised, and the top individual funding recipients.
Click to see the ranking of the best buzzwords:
General findings and random observations
One point to remember is that it often doesn’t take long for a term to become ubiquitous in the startup world. Take NFTs or non-fungible tokens. Neither the term nor the acronym was even approximately until 2017. The term only gained wider public awareness in March, with a headline of $ 69 million auction of an NFT by artist Beeple.
Or consider DeFi, or decentralized finance. The first mainstream media mentions we found online for DeFi, a blockchain-based form of financing that doesn’t rely on central intermediaries, date back to 2019.
Once a buzzword takes off, it can quickly seem ubiquitous. Google News has over 30 million matches each for NFT and DeFi. Other popular terms in the startup world, such as “no-code”, “remote-first” and “metaverse” are also gaining ground.
Where startups might be missing
If you’re a startup, there are a million things you need to worry about, and the buzzword you use to promote your business or build your pitch deck may not seem like a priority.
However, data searches offer reason to believe that founders may miss opportunities to be found by interested investors. In particular, the query results seem to show a bias towards user-friendly terms and less emphasis on buzzwords that might attract VCs the most.
For example, cryptosecurity venture capital investments have increased tenfold from last year, according to Crunchbase analysis. However, according to our query, there were only two companies with the term “cryptosecurity” in their descriptions, and none of the major funding recipients, including Firewall ($ 489 million) and register ($ 468 million), used the term.
So, if you are a trendy crypto-security company, you probably don’t need any help wooing investors. But a startup that just stepped out of the door might want to alert investors to its existence with a focus on cryptosecurity.
We also researched “hyperautomatization,” a term for the technology used to advance automation capabilities within an organization, which was selected by Gartner Group and other trend watchers as a leading tech buzzword. But this one wasn’t very popular among startups either, with just 15 companies including the term in their descriptions.
Both sides of the remote control and the hybrid
On a final note, it should be observed that the slogans around remote work and hybrid work in business descriptions are a bit different from the other buzzwords we polled. Indeed, they can refer either to the target industry of a startup (a recruitment platform for remote recruitment, for example) or to the startup itself (a remote game developer, for example). Funding totals cover investment in remote / hybrid workforce startups and remote or hybrid workforce startups.
Funded companies include those that have raised $ 50,000 or more in disclosed equity investments. For this set of queries, we focused only on businesses that specifically use the designated buzzword in the business description portion of their Crunchbase profile. We did not investigate whether the company is primarily focused on the specific industry, we only looked at the use of the term in the description of the company.
Photo by Piotr Łaskawski on Unsplash.
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