This document summarizes consumer startups trends from 2012. It notes that thousands of consumer web and mobile companies were started in the last 24 months, but there are only a handful of VCs funding consumer startups. While some large tech companies like Facebook, Groupon and Zynga struggled, Google continued growing. The document then outlines 15 trends in consumer behavior in 2012, such as experiencing new things, getting deals, mobile health apps, and interacting with information in the real world through augmented reality and QR codes. It ends with 5 tips for consumer startups, such as having a big target market and competitive advantages.

1. Consumer startups: facts,
trends, business models.
St. Petersburg| 2012
Jane Smorodnikova, CEO
contact@freshle.com

3. Fact №1
Thousands of early-stage consumer web/mobile
companies were started and funded in last 24
months.

4. Fact №2
There are only a few dozen VCs who actively
write consumer Series A checks, and those Vcs
will only do a few deals a year.

5. Fact №3
Facebook’s market cap is about half of what
most tech investors expected before the IPO.

6. Fact №4
Groupon, Zynga and Facebook are down.

7. Fact №5
But Google is still growing. Because it’s useful?

8. Fact №6
Chances for M&A (CrunchBase insights)
1. Enterprise software
2. Networks and hosting
3. Hardware
4. Games and video
5. Mobile
6. Web
7. Ad
8. Search
9. E-commerse

9. Fact №6
Chances for VC (CrunchBase insights)
1. Hardware
2. Enterprise software
3. Mobile
4. Games and video
5. Networks and hosting
6. Web
7. E-commerce
8. Ad
9. Search

10. «Web and mobile are most
mentioned startups on…»

11. CrunchBase facts

12. «Ten million users
is the new one million users»
Chris Dixon

13. Failed model 1: Pay-Per-Bid

14. Failed model 2: AirBnB of cars

15. Trend 1. Newism
In fact the entire world, from emerging* to
mature economies, is now creating new
products, services and experiences on a daily, if
not hourly basis, in every B2C industry.

16. Trend 2. FSTR
Everything is getting faster and FSTR ;-). The online
world, with its relentless acceleration and
amplification – of information, of excitement, of
attention.

17. Trend 3. EXPERIENCE CRAMMING
Consumers want to collect and mix-and-match as
many new and varied experiences as possible.

18. Trend 4. STATUS STREAM
Social status will come from being in-the-know, and
from being part of the 'new'.

19. Trend 5. TRYSUMERS
The risk of trying out something new is
approaching zilch.

20. Trend 6. TO HAVE IS TO (H)OLD
For smart consumers, 'trading in' is the
new buying in 2012.
Possessions don't
(need to) get old
anymore.

21. Trend 7. RED CARPET
The World Tourism Organization has estimated
that the total number of outbound tourists from
China will reach 100 million by 2020 (now 30).
For comparison, US citizens made only 37
million outbound air travel trips during the
whole of 2010.

22. Trend 8. DIY HEALTH
App Store currently offers 9,000 mobile health
apps (including nearly
1,500 cardio fitness apps,
over 1,300 diet apps,
over 1,000 stress
and relaxation apps, and
over 650 women’s health
apps) and by mid-2012,
this number is expected reach 13,000.

23. Trend 9. DEALER-CHIC
MORE FOR LESS
BEST OF THE BEST
For consumers,
securing the best deals
is fast becoming a way
of life, if not a source
of pride and status.

24. Trend 10. ECO-CYCOLOGY
Next for recycling? Brands taking
back all of their products (and recycling
them responsibly and innovatively).
*Patagonia claims
to have so far taken
back 45 tons of
clothing for recycling
and made 34 tons into new clothes.

25. Trend 11. BOTTOM OF THE URBAN PYRAMID
In 2012, the opportunities to cater to
hundreds of millions of low-income urban
consumers will be unprecedented.

26. Trend 12. IDLE SOURCING
Expect crowd-based problem solving to
fuel endless innovations in 2012, especially
as for consumers, contributing will be
more effortless than ever.

27. Trend 13. FLAWSOME
for 2012's consumers, brands that behave
more humanly, including showing their
flaws, will be awesome.

28. Trend 14. SCREEN CULTURE
In 2012 will see three mega-tech currents
converge: screens will be (even
more): ubiquitous / mobile / cheap /
always on; interactive and intuitive;
an interface to everything and anything.

29. Trend 15. POINT & KNOW
2012 will see a mix of the known (Apps!
Augmented Reality!) and the very known
(QR codes!) bringing information about the
objects (and even people) that consumers
encounter in the real world instantly.

30. Good idea 1.
For consumer startups
with non-transactional models
(ad-based or unknown business models),
you need something closer to 10 million
users versus 1 million users to get Series A
funded.
Be sure that
market is big

31. Good idea 2.
When you think that you know your competitor
landscape – start another competitor research.
And repeat it.
 Don’t forget the world.
 Don’t forget substitutes.
Be sure that
you know it

32. Good idea 3.
Use charts to visualize competitor landscape:
 2 dimensions for 2 main values
 blue ocean canvas
Be sure that you
have something

33. Good idea 4.
UserBase UserBase
Market share Conversion
Market Promotion
Then forget market

34. Good idea 5.
 Big and growing market
 Trend and model
 Niche and advantage
 Team and background
 Facts and proofs

35. Go to freshle.com
and sign up!
St. Petersburg| 2012
Jane Smorodnikova, CEO
contact@freshle.com