If you haven’t already, please study our free Bootstrapping course.
According to a recent report by Food Marketing Institute and Nielsen, the online grocery shopping market is expected to grow five-fold over the next decade. American consumers will spend more than $100 billion on food-at-home items by 2025 compared with $20.5 billion in 2016. The number of shoppers buying groceries online has already increased from 19% in 2014 to nearly a quarter as of 2016. It is expected that by 2025, more than 70% consumers will be shopping for groceries online. The industry has attracted the likes of Amazon and Google, both of which have their versions of grocery shopping services. Then, there are others like San Francisco-based Instacart that focuses only on this market. After Snap’s successful recent IPO, analysts believe that Instacart may now be next on the table.
Earlier this month, Snap became among the first few Billion Dollar Unicorns to go public this year. Many anticipated that its successful IPO will prompt some of the other bigger Unicorns, like Uber, Lyft, and Airbnb to test out public waters as well. However, the companies are still cautious. Recently, San Francisco-based Airbnb announced plans that it will go public, but not soon.
After a disappointing year, the IPO market for tech companies has got off to a strong start in 2017. Alteryx recently became the second enterprise software company to go public this year after Mulesoft. >>>
A Markets and Markets report published earlier last year estimates the Identity and Access Management Market to grow 13% annually over the next five years to be worth $14.82 billion by 2021. The market was estimated to be worth $8.1 billion in 2016. The impressive growth rate has helped companies like San Francisco-based Okta deliver strong revenue growth. The company recently filed to go public.
Nearly three years ago, tech giant, Oracle (NYSE: ORCL) began its transition toward the cloud. Since the change in gear, Oracle has seen both revenues and profits fall. Finally, it now appears that the worst is over. As Jefferies & Co. analyst John DiFucci puts it, the “clouds are clearing”.
Over the past few years, the rise of cloud-based services has also resulted in the growth of a subscription economy. More and more enterprises are looking to transition from a traditional product sales model to a pay-as-you-go service relationship. Analysts estimate that global subscription economy will be a $100 billion market by 2020.
According to a Phocuswright report, the total travel market is expected to reach over $400 billion in 2020. US online travel agents’ (OTA) market share will reach 41% by 2020. The online travel market has seen much consolidation over the years and the duopoly of Expedia and Priceline now dominates the industry. >>>
A report published last year estimated the global consumer lending balances outstanding at the end of 2015 at $42.3 trillion, recording a growth of 3.3% since 2011. Within the sector, residential mortgage accounted for $32.9 trillion and non-mortgage consumer lending accounted for $7.5 trillion, excluding credit card loans and credit card balances of $1.8 trillion. Over the past few years, this non-mortgage lending industry has seen the emergence of newer, non-traditional banking institutions such as Lending Club, OnDeck, Prosper, and Elevate Credit. Elevate Credit is now looking to list on the stock market after delaying those plans for over two years.
>>>
After years of mulling over the idea of going public, San Francisco-based Billion Dollar Unicorn player MuleSoft finally listed this month. It became the first enterprise software company to list this year and initial market reports show that the stock is holding up well.
The recent acquisition of AppDynamics by Cisco has brought the application performance monitoring (APM) market to the forefront. According to IDC, the APM market was worth $2.6 billion in 2015. The market is led by Dynatrace with 15% share and New Relic (NYSE: NEWR) came in sixth with 6.2% market share. AppDynamics accounted for 5.5% market share. New Relic has traditionally focused on Tier II and Tier III applications for small and medium sized enterprises. But now, it appears to be changing gears. >>>