6 Startup Predictions for 2023

By Spencer Hulse Spencer Hulse has been verified by Muck Rack's editorial team
Published on January 27, 2023

There is a lot of fear about what is to come in 2023, especially with the massive number of layoffs seen in 2022 and the beginning of this year. However, startups are a potential source of growth and hope in uncertain times, especially when it comes to supply chains and innovation. Learn more by checking out these startup predictions for 2023.

Expect Remote Work to Continue to Grow

The pandemic forced everyone to shift the way they worked, and while it started as a response to something negative, many found that they liked it. Workers enjoyed the freedom, and companies realized they could still get productive workers, potentially without paying for an office at all.

As layoffs soar and the economy declines, companies are going to consider remote workers even more in 2023. That is especially true for startups, which tend to be more flexible and open to hiring remote workers in areas that might not cost as much. Not every role will go remote, but sales, support, and similar roles are prime candidates.

AI Will Become a Major Focal Point for Startups

There is no stopping the AI wave, particularly when it comes to generative AI. From text to images, ChatGPT to Unstable Diffusion, it is everywhere. It has captivated Big Tech, including Microsoft and Google, and it is already positioned to be the main focal point of their war for search engine supremacy.

AI’s pivotal role in how tech operates and humans interact with machines is the very reason it is on this list of startup predictions. Many AI-focused startups are expected to appear, and even those that do not deal with it directly will start to use the powerful technology to their advantage.

Automation and Robotics Will Support Frontline Workers

The struggle to find enough frontline workers has been a problem for years. There are many reasons, but the lacking workforce is hurting, and leaders in various sectors have been scrambling to find a solution. Automation is one answer, and it is already being used effectively in various industries, including:

  • Healthcare
  • Agriculture
  • Manufacturing
  • Transportation

Automation allows low-value tasks to be taken out of human hands and deserves a place on the startup predictions list all on its own. But, its cooperative relationship with robotics is where it really stands out. Advancements in robotics enable machines to do some tasks all on their own, easing the strain on frontline workers.

Startups Are Going to Take Aim at Supply Chains

Supply chain issues are a major pain point for many companies, and the issue is large enough to affect the economy as a whole. For that reason, there have been many efforts to digitize the supply chain, supported by various technologies, including:

  • Cloud technology
  • AI
  • Precision handling
  • Robotics

The efforts are just now starting to reach maturity. As such, one of the startup predictions is for companies to double down on transforming the supply chain into a more efficient ecosystem. There is currently a slow but sure movement toward automating the entire supply chain, and it is already taking place in warehouses and ports.

Novelty and Innovation Are Going to Reign Supreme

When funding was abundant, many startups popped up in the same “hot” space, some looking like carbon copies of others. At the time, there was enough room for multiple companies, even similar ones, and following in the footsteps of a success story seemed like the obvious choice.

Things are different now. Funding is down, money is tight, and finding a unique approach is more valuable than joining a batch of similar companies down a beaten path. Novelty is in, copycats are out, and that goes for everything mentioned in these startup predictions.

Expect Valuations to Return to Earth

Valuations skyrocketed when things were good, with the unicorn herd expanding at a rapid pace. Companies worth billions were no longer as rare as before, and investors wanted in. However, with the economy in its current state, the previous valuations simply do not make sense.

It is expected for many startups once considered “unicorns” to fall below that line, returning to the norm. While many will fall, those that make the cut in this environment are worth watching.

Did you enjoy this article on startup predictions? Then follow us on Twitter to stay up-to-date on stories and startups throughout 2023.

By Spencer Hulse Spencer Hulse has been verified by Muck Rack's editorial team

Spencer Hulse is the Editorial Director at Grit Daily. He is responsible for overseeing other editors and writers, day-to-day operations, and covering breaking news.

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