Defying all economic odds, 2020 is shaping up to be the year of the startup…. Which makes this one of the best years in history to be a startup investor.
The United States Census reports that business applications were up by 43.7% at the end of Week 42, compared to this time last year.
There was a total of 1.5 million new business applications submitted during Q3 alone… a 77.4% increase compared to the previous quarter.
These numbers would be unprecedented in any year, but it’s even more notable that they’re coming during the middle of one of the worst economic downturns in the world’s history.
Today, let’s talk about exactly what’s causing this major entrepreneurship uptick, if it’ll last beyond the end of the year, and exactly how you can play it for the months and years to come.
Let’s get into it…
In general, economic downturns tell us two stories.
First, recessions are certifiably tough on small businesses.
This year in particular, thousands of small businesses have shut across the country, either partially or permanently.
And while small businesses employ about half of the country’s private workforce, data suggests that around a quarter of small businesses in the United States are still closed.
Even in the startup world, many companies have had to pull back on their spending to make every single dollar count while they wait out the storm.
It’s a time of mass uncertainty… but that leads me to the next point:
Recessions and times of uncertainty drive creativity and innovation.
Entrepreneurs are hardwired to seek out ways to fix major problems. Their creativity and innovative spirit have produced many of the solutions we’ve seen during past crises.
Think about our last major economic recession in 2008. The Great Recession brought us some of the biggest names in tech history, like Slack, Airbnb, WhatsApp, and more.
But 2020 is different to any other recession we’ve ever seen.
Of course, this year has brought a significant amount of shuttered businesses… but it’s supplemented by an unprecedented increase in new business applications.
In particular, there’s been a surge in “high-propensity” business applications this year.
These are the businesses identified by the U.S. Census as the ones most likely to add new employees… in other words, the businesses primed for the most growth.
For comparison, the Great Recession saw both massive business closure AND massive declines in business applications.
Basically, 2020 is an anomaly…
And the startup world has rarely seen the growth potential it’s currently experiencing right now.
The massive amount of companies founded this year alone is one thing… but so many companies founded before this year are seeing unparalleled success, too.
I believe that the momentum startups are gaining this year will continue through 2021 and beyond.
They’ve designed a piece of proprietary tech that’s revolutionizing the $460 billion engine industry as we speak. Even this year, they’ve made incredible progress.
Here’s what these guys have been up over the past few months:
They successfully demonstrated their patented engine design in a big-name competition for the United States Army… and they advanced to the finalist stage.
They also received a grant from the Army to continue developing their engine tech for years to come.
And finally, they’ve made key hires that will drive their business to new heights in the coming months and years.
If this company is able to achieve this much during an economic downturn, just imagine the kind of success they could continue to see when the economy turns around.
And right now, you’re in a prime position to take advantage of this growth right before they really take off.
My colleague Neil Patel is breaking down this deal recommendation in a Private Dealroom analysis right now. But if you want this information, you’ll have to hurry.
After midnight on October 27th, the doors to this Private Dealroom meeting are closing for good.
I don’t want you to miss out on this one, so make sure you get all the information you need from Neil and the independent research team right away so you can learn how to invest.
Neil Patel is a successful entrepreneur and investor who has been active in the startup scene for nearly two decades. Born in London, England, he moved with his family to Orange County, California when he was two years old, where he was surrounded by entrepreneurs and innovators from an early age. Neil is the founder of several companies, including Crazy Egg, Hello Bar, and Quicksprout – companies that established Neil as one of the world’s leading digital marketers. But Neil spends more time these days on the other side of the table – as an angel investor. He has made some unbelievable returns backing early-stage startups. Now, he’s here to teach you to do the same. Neil launched the Angels & Entrepreneurs Network to pull back the curtain on the world of “pre-IPO” investment, because he believes everyone should have access to the same playing field – not just society’s high and mighty.
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