The Findings From BusinessFinancing.co.uk
BusinessFinancing.co.uk analyzed data found through Crunchbase, a database for funding and other information. What they found was surprising: growth for companies in about 30 different industries.
The areas of greatest business growth were science and engineering, energy, and manufacturing, which grew 329.7%, 187%, 113%, respectively.
COVID-19’s Role in Startup Business Growth Across the World
Interestingly enough, all of those industries are directly related to the fight against COVID-19. From the manufacture and sale of face masks, disinfectant equipment, and other protective equipment, to the development of telehealth technology and infrastructure, COVID-19 played a critical role in the aims and strategies of companies across the globe.
“Few people will remember 2020 fondly,” read the report. “But one thing that did come from the year that Covid struck was that a lot of people tried new things. Some took up baking. Others tried working from home. And, across the world, more than 10,000 entrepreneurial teams launched new startups.”
In fact, the report notes that the total funding for global startup businesses rose over 40% from 2020 to 2019 — impressive growth for any business or industry, but even more notable amid the pandemic.
The Context of BusinessFinancing.co.uk’s Findings
It’s, in some ways, a surprising development. Early last year, the economy tanked on the news of global lockdowns and other regulations related to the pandemic, and one could be forgiven for thinking that it would not recover soon.
Luckily, the economy is on a strong path back to growth, and startup companies are at the forefront of that growth.
Other businesses that BusinessFinancing.co.uk surveyed are also growing.
The agriculture, messaging, and financial services businesses each grew by more than 90%, showing strong growth in a variety of industries.
The United States’s Role in the Growth of Startup Companies
What’s more, the US economy for startup businesses received the most funding, dollar-for-dollar, in the world, raising $35,594,999,900 in 2020.
Brainshark, a company in the data analytics industry, saw record growth in the midst of the pandemic. The CEO of the company, Greg Flynn, attributes the success to being able to adapt to the demands of the pandemic.
“Companies across the globe had to completely rewrite their playbook when the pandemic began disrupting business one year ago,” he said. “Many realized improving their sales readiness was a way to gain a competitive advantage.”
But the growth was not limited to the US. The top three countries whose business funding experienced the most percentage growth were Estonia, Chile, and Colombia.
The data compiled by BusinessFinancing.co.uk goes to show that even in times of great uncertainty about the economy, startup companies across the world can outperform expectations. And if the difficulties of the coronavirus are any indication, the resilience of businesses across the world will translate to other difficult circumstances as well.
About the Author
Elijah Labby is a graduate of the National Journalism Center. He has previously written for Broadband Breakfast, a technology and internet policy website.