Startup Commons

  • Startup Commons
    • About Us
    • Our Team
    • Our Customers
    • Services And Pricing
    • Our Business Model
    • Our Digital Solutions
    • Our History
    • Contact Us
    • Partner With Us
    • Request For Speakers
    • Job Opportunities
    • International Internships
  • Business Creators
    • About Business Creators
    • Creating Businesses
    • What Is A Startup
    • Startup Development Phases
    • Growth Academy Elearning Platform
    • Founders Shareholders' Agreement and Team Building Online Training
  • Support Providers
    • About Support Providers
    • Learn About Startup Ecosystem
    • Startup Development Phases
    • Providing Support Functions
    • Innovation Entrepreneurship Education
    • Innovation Entrepreneurship Curriculum
    • Growth Academy eLearning Platform
    • Certified Trainers
    • Become Growth Academy Provider In Your Ecosystem
    • Growth Academy Training On-Site By Startup Commons
  • Ecosystem Development
    • About Ecosystem Developers
    • What Is Startup Ecosystem
    • Ecosystem Development
    • Ecosystem Development Academy eLearning Platform
    • Subscribe to Support Membership
    • Ecosystem Operators
    • Development Funding
    • For Development Financiers
    • Startup Ecosystem Maturity
    • Case Studies
    • Submit Marketplace App Challenge
    • Become Ecosystem Operator
  • Digital Transformation
    • Digital Transformation
    • Ecosystem Operators
    • Apply To Become Ecosystem Operator
    • Applications Partnership
    • Ecosystem OS
    • Circle Pass User Accounts
    • General Data Protection Regulation (GDPR)
    • Digital Ecosystem Applications
    • App Developers
  • Contact Us
  • Startup Commons
    • About Us
    • Our Team
    • Our Customers
    • Services And Pricing
    • Our Business Model
    • Our Digital Solutions
    • Our History
    • Contact Us
    • Partner With Us
    • Request For Speakers
    • Job Opportunities
    • International Internships
  • Business Creators
    • About Business Creators
    • Creating Businesses
    • What Is A Startup
    • Startup Development Phases
    • Growth Academy Elearning Platform
    • Founders Shareholders' Agreement and Team Building Online Training
  • Support Providers
    • About Support Providers
    • Learn About Startup Ecosystem
    • Startup Development Phases
    • Providing Support Functions
    • Innovation Entrepreneurship Education
    • Innovation Entrepreneurship Curriculum
    • Growth Academy eLearning Platform
    • Certified Trainers
    • Become Growth Academy Provider In Your Ecosystem
    • Growth Academy Training On-Site By Startup Commons
  • Ecosystem Development
    • About Ecosystem Developers
    • What Is Startup Ecosystem
    • Ecosystem Development
    • Ecosystem Development Academy eLearning Platform
    • Subscribe to Support Membership
    • Ecosystem Operators
    • Development Funding
    • For Development Financiers
    • Startup Ecosystem Maturity
    • Case Studies
    • Submit Marketplace App Challenge
    • Become Ecosystem Operator
  • Digital Transformation
    • Digital Transformation
    • Ecosystem Operators
    • Apply To Become Ecosystem Operator
    • Applications Partnership
    • Ecosystem OS
    • Circle Pass User Accounts
    • General Data Protection Regulation (GDPR)
    • Digital Ecosystem Applications
    • App Developers
  • Contact Us

Dive into Data: How Can Startups Make Markets?

8/3/2018

Comments

 
Startups are the future of finance.
This trend is not limited to fintech startups. While fintech companies will play essential roles in financial inclusion and alternative finance, startups that specialize in the smart grid and internet of things are positioned to make markets.

If you are considering founding or supporting startups, you should seriously consider entering the data space. Put on your scuba gear.
Using examples from water markets, we are about to dive into data.

How can startups make markets?
​
Picture

​Market Development Hierarchy of Needs


Investors need data if markets are going to emerge and this is where innovative startups play a role.
At the base of the hierarchy, internet-of-things and smart-grid startups need to collect data on relevant information, such as water flow and electricity use.


Once sufficient data is in place, basic commodity markets can emerge to facilitate trading of water, using spot prices and forward contracts.
According to Investopedia, “A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date.”

These contracts are sold over-the-counter, without exchanges, and can be used for hedging or speculation. As more data is gathered, the public and private sectors can collaborate to create regulated exchanges. Once exchanges have been developed, market participants can trade futures, which are essentially standardized forward contracts, and other derivatives of the underlying commodity.


If markets develop for water, then water pricing will theoretically become more efficient. Through the use of financial instruments, industries that rely on water, such as the agriculture and energy sectors, will be able to hedge their exposure to fluctuations in water supply and price.

Governments can also craft better resource policies as water markets become more mature. Utility companies will also face higher incentives to minimize leakages and use electricity more efficiently for water pumping and processing.


Water Sector Startups

Numerous startups have already begun gathering data in the water sector.

They include:


  • Arable Labs - measures rainfall, crop water demand, water stress, etc.
  • AquaSeca - sensors track water consumption
  • EMAGIN - helps water operators manage water systems using AI
  • Flo Technologies - monitors home water usage
  • FREDsense - monitors water for contaminants
  • Hydromodel Host - provides real-time data on groundwater
  • Jupiter - predicts effects of climate change
  • Lotic Labs - assesses impacts of droughts, floods, etc.
  • Pluto - provides stamped water data from meters and sensors
  • Utilis - uses aerial imaging to identify leaks in water infrastructure

As you can see, these startups utilize leading-edge technologies to capture water data. They comprise the first level of the market development hierarchy.

​The next steps are market creation and water trading.
Picture

​Water Trading

Water will become the next oil.
Do you agree?


Multiple factors are converging to create water trading markets.
On one hand, data on water usage and weather patterns is becoming more abundant. Additionally, water is becoming a scarcer resource as global population increases strain water supplies, due to both agricultural production and household consumption.

According to the United Nations, the world population was 7.3 billion in 2015, and it is expected to reach 9.7 billion by 2050.
The United Nations says, “With the existing climate change scenario, almost half the world's population will be living in areas of high water stress by 2030.”
Additionally, “the world needs to produce at least 50% more food to feed 9 billion people by 2050.”

As these factors converge, governments will recognize the need to manage water resources, companies will search for efficient water pricing, and traders will find fortunes to be made.


Emerging Commodity Markets

The same principles that apply to water markets can be applied whenever demand exists for scarce resources. When resources fail to exist in abundance, conditions become ripe for market development. As people develop new resources, such as technical apparatuses and pharmaceutical products, new commodity markets will emerge. 

People will also undeniably find new applications for previously unused natural resources. Oil markets did not exist until people started using oil for energy. As new applications and innovations emerge, new commodity markets will come into existence.

Who will make the next markets?

Startup Commons with his startup development phases framework can help to plan the journey.
Learn more

Picture

​Startup Commons has released entire Growth Academy innovation entrepreneurship curriculum training materials with more than 700+ slides, along with supporting booklets​ for free co-development and use.
​

All is released under Creative Commons licensing and in editable format.​​​

The curriculum is built, designed and refined over the years to increase the volume of entrepreneurship and likelihood of startup success by focusing on removing or reducing the biggest “universal risks” and to educate about optimal methods and structures.
​

The base knowledge shared via these trainings is accumulation of more than twenty years of international serial entrepreneurship experience combined with more than ten years of parallel experience on startup advisory. 

➡️ ​If you are interested join our facebook groups:
Startup Ecosystem Developers
Innovation Entrepreneurship Education providers/trainers

​
Comments
    Our Services
    Supporting startup ecosystem development, from entrepreneurship education, to consulting to digital infrastructure for connecting, measuring and international benchmarking.
    Picture
    ​Subscribe for updates
    Startup ecosystem development updates with news, tips and case studies from cities around the world. 
    Subscribe

    Join Us?

    Are you interested to join our global venture to help develop startup ecosystems around the world? 
    Learn more...
    ​

    Archives

    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    January 2021
    November 2020
    June 2020
    May 2020
    April 2020
    March 2020
    October 2019
    June 2019
    February 2019
    November 2018
    October 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    May 2017
    February 2017
    December 2016
    July 2016
    March 2016
    February 2016
    January 2016
    November 2015
    October 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    July 2013
    June 2013

    Categories

    All
    Accelerator
    Africa
    Asia
    Australia
    Commitment
    Concepting
    Design
    Digital
    Ecosystem
    Establishing
    Europe
    Event
    Growth
    Incubator
    Infrastructure
    Innovation
    Investment
    Leadership
    Lean Startup
    Mentor
    North America
    Report
    Scaling
    Startups
    Team
    Validation
    Vietnam
    Vision

    RSS Feed

Startup ECOSYSTEM DEVELOPMENT
To Scale INNOVATION Entrepreneurship

Business
​Creators

What is a Startup?
Startup Development Phases
Business Creation
​
Growth Academy eLearning 

​​Support
​Providers

Supporting Startups
​
Startup Curriculum
​
From Technology Transfer to Open IPR
Support Providers
​Knowledge Center
​
Funding Sources
Growth Academy eLearning ​

​​Ecosystem
​Developers

What is Startup Ecosystem?
​From Innovation Ecosystems to Startup Ecosystems
Startup Ecosystem Development
Startup Ecosystem Maturity
Ecosystem Developers 
​
Development Funding 

Ecosystem Operators

About Ecosystem Operators
Funding Sources
​Digital Ecosystem Applications

EcosystemOS​


Picture
Subscribe to our mailing list
Entrepreneurship, innovation and startup ecosystem development updates, with news, tips and results from cities and organizations around the world.  #startupecosystem
Subscribe
Growth Academy eLearning | Resources | Blog
Join Us | Sharing Policy
Picture
Service by Digiole Oy
​© 2023 Digiole Oy some rights reserved