• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
WittySparks Logo White

WittySparks

Ignite Your Thoughts

  • Topics
  • Reviews
  • Newsletter
WittySparks / Business / Startups / The Rise of Professional Level Tools Leads to Record Numbers of Tech Startups
The Rise of Tools Leads to Record Numbers of Tech Startups

The Rise of Professional Level Tools Leads to Record Numbers of Tech Startups

Startups July 26, 2014 by Nishitha

In today’s tech world, building a startup and selling it to Google or Yahoo for a million dollars is no longer shocking. In fact, we’ve seen multiple apps, businesses, or services built by teenagers that are selling to the aforementioned tech giants for millions – or even billions – of dollars.

We see simple gaming apps like Candy Crush, Flappy Bird, or 2048 which are extremely light on graphics or groundbreaking features that make tens of thousands of dollars a day or be flipped to larger companies for huge profits. The common factor in all of them? They are built by relative unknowns and reaping huge revenue numbers, seemingly overnight.

Are the youth of today smarter than they were in generations past? Well, they have an infinite amount of information easily available. Hence, it’s easy to argue that they are, but the easy correlation between cyber millions and tech entrepreneurs isn’t stemming from intelligence alone.

The availability of pro-level tools – whether paid for or of dubious ownership – leads to a new sort of internet gold rush that sees many startups (with shoestring budgets) pocketing fortunes in a matter of months.

Whether it’s Sketchup for easy mockups and prototyping of physical products, Total Video Converter for converting multiple forms of video, or even free options such as Apple’s Xcode, these sorts of pro-level tools are essentially the backbone for this new breed of tech startup. Even powerful code editors that were once only available in Adobe’s relatively expensive creative suite – such as Dreamweaver – are free, powerful, and at your fingertips.

Today’s entrepreneur has a whole host of tools available to him that have never been available in entrepreneurship history, and it shows. By the numbers (according to the Bureau of Labor Statistics), the number of startups has been decreasing since 2006. No shock here, as it’s right before the 2008 recession and coincides with the banks beginning to tighten up their wallets when it came to lending.

Now, that stat doesn’t tell the whole story. While there are fewer and fewer startups each year, the amount of earnings has risen since 1997. To summarize, you have fewer actual businesses being started, but the amount of money that each of them makes is increasing, not just at the inflation level. Earnings have risen incrementally higher than inflation every year during that time frame and have reached the near-bubble status that we’re in now.

The stat that you won’t find in the charts above is the number of freelance operations. Dong Nguyen hit a vein of gold when he created the uber-successful, Flappy Bird. Dong created the game on his own, so you have to wonder how skewed the stats are when attempting to figure single app creators (Dong has actually created multiple apps) that wouldn’t necessarily be considered a “business.”

These freelance operations are built entirely on the tools mentioned above. They’re making huge fortunes for less startup cost and operating revenue than has ever been possible at any point in history.

They say that tools make the man, and it appears that this may be the case in the digital world. With each passing year, and with each tool that makes formerly difficult tasks into those that are now more accessible than ever, we’ll continue to see the one-person operations – as well as the small teams – take on the big boys in the digital marketplace… and sometimes we’ll see them walk away as billionaires.

Image Source: Startup Diagram Structure

Related Topics

  • What Are the Key Steps to Start a Business on a Budget?
  • 5 Affordable Tactics to Boost Your Startup’s Business Performance
  • Guide on Starting a Business in the U.S. as a Foreigner
Previous Post: « New Tech Tools and Software Startups Can Use To Jumpstart Deals and Partnerships
Next Post: Automated Testing and The Pursuit of Perfection »
Profile picture for Nishitha

About Nishitha

Co-founder of WittySparks
WittySparks Staff

I am done with my Physiotherapy Graduation. And I always try to share Health and technology tips with people. Apart from Physiotherapy and being a tech savvy, I do explore more on Technology side and I keep sharing my findings with wider audience.

View all posts by Nishitha

Primary Sidebar

Search

Exclusive Coupons

  • Moqups coupon code: WITTYSPARKS for 20% or PARTNERS50 for 50% discount.
  • WPForms coupon code: WITTYSPARKS for 50% off.
  • Serpstat coupon code: wittysparks_discount for 30% off.
  • SEO Buddy coupon code: WITTYSPARKS for 25% off.
  • Morningscore coupon code: wittysparks for 30% off for 3 months.
  • FlexClip coupon code: WITTYSPARKS for 30% off.
  • Uplead coupon code: “witty” for 30-day free trial.
  • FastestVPN coupon codes: WITTYSPARKS15 or WITTYSPARKS10 or Get up to 93% OFF.
  • Outranking.io coupon code: WITTYSPARKS50 for 50% off.

For more such offers visit our exclusive offers for SEO, Bloggers, Marketers and for Business owners.

Featured Productivity Software

Notion logo
Notion

Whether you’re a solo entrepreneur or a large team, Notion Workspace can help you stay organized and get more done. Get started today and take your productivity to the next level.

Try Notion for FREE

Footer

Affiliate Disclosure

If you make a purchase from WittySparks links, we will receive a small commission. See our Affiliate Disclosure.

Sponsors

Partnered with FreePik to use the licensed images.

turn to dhgate for smartphone

Follow Us

  • Facebook
  • Twitter
  • Pinterest
  • LinkedIn
  • Instagram
  • YouTube
  • RSS

Copyright © 2023 · Hosting sponsored by Rocket.net (Affiliate link)

  • About Us
  • Contact Us
  • Privacy Policy
  • LinkedIn
  • Twitter
  • Like
  • Pinterest