Looking for startup companies with bright prospects to invest in 2021? Here are 11 to turn your fortunes around in the new year.
It was not long ago when startups all across the globe were in their worst phase. Coronavirus-stricken industry hit a new low on cash flow. The big business groups were literally unable to fund ambitious startups. As a result, many of the startups had no option but to downsize or shut shop. However, the present scenario has changed a bit. The news of an effective coronavirus vaccine has come as a glimmer of hope for the business world. The cautious business honchos with deep pockets are generously opening their purse strings. The startups which saw their lowest ebb till a few months back are now back in the funding game. As the sun is about to set on 2020 and the new year is just around the corner, these startups are expected to pay rich dividends to those looking to invest in 2021. Some may go for the IPOs, while others’ shares can scale new heights.
Here is a list of 11 startups to invest for good returns in 2021
Started in 2012 by Stanford University professors Andrew Ng and Daphne Koller, the online education startup has updated its valuation to $2.5 billion. In July this year, the company raised $130 million in Series F Funding. In December last year, its partners spanned in 29 countries. Coronavirus pandemic confined people to their homes and it saw Coursera making phenomenal growth this year and is expected to see an upward trajectory in 2021 as well.
Watch: Coursera’s Top 20 Courses during the Coronavirus Pandemic
Robotic Process Automation (RPA) may not be a household technology, but it’s futuristic and so it ranks high in the share market. UiPath has emerged as one of the top software startups who develop a platform for RPA. A CNBC Disruptor 50 and No. 3 Forbes Cloud 100, UiPath raised $225 million in July this year. Fifteen years into its existence, the company has become a $10.2 billion behemoth, up from $7 billion a year ago. It was also ranked the No. 1 company in the Financial Times 1,000 list. Considering the company’s growth in the past year, UiPath is surely a hot startup to invest in 2021.
Tesla and its CEO Elon Musk turned their fortunes around in 2020. Musk became the second richest person on Earth after adding more than $100 billion to his fortunes this year. The sole reason for his remarkable growth is Tesla’s outstanding performance. Tesla became the most valuable carmaker in the world in June, beating Toyota for the top spot. Its current value is around $500 billion. Technically a startup, Tesla’s share value has increased more than six times this year and a similar performance in 2021 will those who invest richer by a significant amount.
Watch: Tesla Stock reaches All-Time High in 2020!
The Walmart-owned Indian e-commerce firm is reportedly launching an IPO in the United States this year. The online retail companies have made a fortune during the coronavirus pandemic and it spurred Flipkart to contemplate an IPO launch. Flipkart’s valuation can go as high as $40-45 billion next year. It will be much higher than $21 billion, the amount Walmart spent to purchase Flipkart in 2018. That makes the company a no-brainer startup stock to go for if you wish to invest and see immediate returns.
Insurance business is always a promising business in India as it has a large scope to grow. Policybazaar’s CEO Yashish Dahiya said in June that the company was keen to launch an IPO in 2021. With the new law which allows the Indian companies to list overseas, Policybazaar can go for a US launch of the IPO. The company wants to go for a valuation of $3.5 billion, more than double of its value in July.
In the coronavirus-hit world, people want to rely on contactless payments. Online payment companies like Stripe are the biggest beneficiaries of the present scenario. Since January 2019, the company’s valuation has gone up from $22.5 billion to $36 billion. Though the current developments in coronavirus vaccine paints a bright picture, people are still preferring online payments. As a result, Stripe is expected to grow by leaps and bounds and will be a highly coveted startup stock for both those looking to invest long term and short in 2021.
Watch: How Stripe exploded on the map and turned into a behemoth
Stripe is surely one of the best startup stock options to invest for maximum returns in 2021.
Another example of digital payment platforms or banks doing well during the pandemic is Chime. Established in 2013, the Chime’s value has swelled to $14.5 billion. In September, the company raised $485 million. Chime has a network of 38,000 ATMs across the US and has an edge over competitors since it doesn’t charge fees for overdrafts and minimum balances. The company’s initiatives such as to get paid up to two days early on direct deposits for payrolls has added to its growing reputation. The company is attracting several thousand users a month and installs itself as a reliable option in the share market.
Chime has a network of 38,000 ATMs across the US and an edge over competitors since it doesn’t charge fees for overdrafts and minimum balances.
Alibaba Cloud Computing
Cloud computing companies have cashed in big time during the pandemic with Amazon leading the business. But, the company that can pay rich dividends in 2021 in Alibaba’s cloud computing service. It can displace Google’s cloud computing from third place next year. Alibaba’s cloud computing registered 59 per cent year-over-year growth to $2.19 billion. Given that China is also moving towards digitization fast, Alibaba’s cloud computing looks like a clear winner in the share market.You will find more infographics at Statista
5G internet technology is going to transform the world in a significant way. It is no wonder that some of the biggest gainers in 2021 will be the 5G companies. Qualcomm has signed an agreement with Samsung to produce affordable 5G Snapdragon chipsets. Its shares have returned 24.4% year-to-date and are expected to grow by 31.6%. It is surely a safe bet for investors.
Watch: Qualcomm CEO optimistic about faster rollout of 5G
Ericsson ADS is a competitor to Qualcomm and a major player in the 5G market. It has brought 5G services to North America, Asia, Europe, South America and Africa. It has delivered a price return of 23.75% year-to-year. Ericsson can also be a long-term investment as it is estimated to rise at a rate of 26.3% per year over the next five years.
Artificial Intelligence (AI) is getting involved almost in all spheres of life. No wonder, shares of AI services will also grow fast. Google’s Alphabet is being used from healthcare diagnosis, autonomous vehicles to YouTube recommendations. It’s one of the fastest growing internet stocks in the market as its share can rise by 17% soon and surely THE startup stock if you’re looking to invest.You will find more infographics at Statista