the #startupstack

The #StartupStack

In partnership withFrom

@TechCityUK @stripeIn partnership withFrom

The #StartupStack

It used to cost £3.3m to launch a tech startup.

2000

£3.3m

2005

£275,000

2009

£32,000

2011

£3,200

Source: CB Insights, 2015


The #StartupStack

It used to take startups twice as longto grow and go global.

Source: Atomico, 2015

72months

25months

Founded2003 - 2008

Founded2009+

Time taken to reach 100m users

41 months

22months

Founded2003 - 2008

Founded2009+

Time taken to internationalisefrom year of founding


The #StartupStack

Why the change?

A suite of cloud-based tools designed to help entrepreneurs easily outsource and automate the fundamentals of running a business, such as data storage, accepting payments or team collaboration.

The #StartupStack


The #StartupStack

Source: Tech City UK - Stripe Startup Stack Survey, 2016

The UK #StartupStack190+ tools names across 13 business functions

Legal & ComplianceLegal & Compliance

Database ManagementDatabase Management Human ResourcesHuman Resources

AccountingAccountingCode repositoriesCode repositories

CybersecurityCybersecurity

Customer SupportCustomer SupportRecruitmentRecruitment

Hosting & Data StorageHosting & Data Storage

Team Collaboration & CommunicationTeam Collaboration & Communication Customer Relationship ManagementCustomer Relationship Management

AnalyticsAnalytics

PaymentsPayments


The #StartupStack

These tools are making it easier andcheaper to start a tech business today.

70%believe some UK startups would not be able to exist without the stack of tools they use.

6 - 15tools used by typical tech startup today, according to majority of respondents.

85%agree that tools have made it cheaper to start a tech business.

89%agree that tools have made it easier to start a tech business.



The #StartupStack

Today, startups don’t reinvent the wheel.


Less than 10% build theirown payments infrastructure

Less than 12% build theirown CRM system

“The DIY-approach to setting up your own infrastructure no longer makes sense for today’s startups, when they can instantly integrate with Startup Stack tools that do all the heavy lifting. It also future-proofs businesses and accelerates growth by baking in the ability to scale.”

— James AllgroveHead of UK Growth at StripeLess than 14% build their

own servers or data storage


The #StartupStack

1 in 4 of the tools named in the surveywere launched within the past five years.


“Many of these businesses are also startups that didn't exist a few years ago, and so they have a deep understanding of our mentality and our desire to focus on what we do best and on growing really quickly while making our customer proposition better and better.”

— Aron GelbardCEO, Bloom & Wild

2011 - 2015


The #StartupStack

Where are tools having the biggest impact?

Source: Tech City UK - Stripe Startup Stack Survey, 2016. Multiple answers possible.

AnalyticsTeam Collaboration & Communication

Hosting & Data StoragePayments

Customer Relationship ManagementCode RepositoriesCustomer Support

AccountingDatabase Management

CybersecurityRecruitment

Human ResourcesLegal & Compliance

0% 10% 20% 30%

Percentage of startups which rated tool group as most impactful


The #StartupStack

#1 Analytics Tools to help gather and analyse business data,from social media engagement to conversion rates on mobile.


54% QUICKER PRODUCT DEVELOPMENT

42% BOOSTING PRODUCTIVITY

38% GETTING TO MARKET MORE QUICKLY

“determine what parts of the product work or need change”

“user centric design and data driven development”

“better return on marketing investment and data with which to inform strategy development”

“understanding of what is happening to my business and customers”

“You grow what you measure”

“Actionable Data”

”Better ROI”

Biggest benefits

What startups say


The #StartupStack

#2 Team Collaboration & Communication

Tools to help with remote working,file-sharing, issue tracking, projectmanagement and communication.

Sources: Tech City UK - Stripe Startup Stack Survey, 2016 | g2crowd, 2016

“Ideas easier to implement”

“Better customer service”

“Keeping information all in one place”

“Getting input from others, or sharing ideas with teams becomes easier”

“it influences and maintains company culture”

“taking project communications, issue tracking, and task tracking, assignment and management out of email”

89% EASIER TO WORK REMOTELY

80% BOOSTING PRODUCTIVITY


Biggest benefits

What startups say


The #StartupStack

#3 Hosting & Data Storage Tools to help with managing cloud storage,application platforms and web hosting.


“Simplicity - contracting out this service”

“Easier scalability and flexibility”

“Reduced cost” “Scalability”

74% REDUCED OPERATING COSTS



Biggest benefits

What startups say


The #StartupStack

#4 Payments Tools to help with accepting paymentsand automating financial operations.

Sources: Tech City UK - Stripe Startup Stack Survey, 2016 | g2crowd, 2016

“Better cash flow and payments experience”

“Easier to integrate Apple Pay”

"Decreased developer time for concept to completion"

“Efficiency” “Better monetisation”

"Developers don't have to worry about security and PCI compliance"

"Get an idea to market as quickly as possible"


58% EASIER TO EXPAND INTERNATIONALLY

51% REDUCED OPERATING COSTS

Biggest benefits

What startups say


The #StartupStack


Case study: Unbundling Bloom & Wild’s Startup Stack

“We've used a huge number of tools to accelerate our growth… All the areas that we use third party tools for are big sources of complexity and would have taken a huge amount of time, effort, staff and cost to create ourselves.”

— Aron GelbardCEO, Bloom & Wild

AnalyticsAnalytics

CollaborationCollaborationPaymentsPaymentsCybersecurityCybersecurity AccountingAccounting

Hosting & Data StorageHosting & Data Storage

Customer CommunicationCustomer Communication

Code RepositoriesCode Repositories DeliveryDeliveryCustomer supportCustomer support


The #StartupStack

Where is there demand for more tools?

think more tools in cybersecurity could help startups grow faster

2 in 5think that more tools in legal & compliance could help startups grow faster


“...in key areas, such as legal function, HR functions, and cybersecurity, there is still more to look forward to. At Seedcamp, we’re actively investing into companies that will plug these last remaining infrastructure gaps, including CharlieHR, a free to use automated HR platform, and cybersecurity startup, Rawstream, which helps employees stay safe and productive. This year we partnered with NextLaw Labs to invest even more into the legal tech space, and have already backed companies including Juro to automate legal contracts.”

— Carlos Espinal, Partner, Seedcamp

emerging examples emerging examples

1 in 5


The #StartupStack

What do startups look for in tools?Cost-efficiency is important, but certainly not the only deciding factor.


“...the research also highlights the importance of factors such as cost, ease of integration and stability, all three of which ring true. I’d also add user experience and global performance to the list – for a global business such as ours, cloud based tools must work as well for our colleagues in our APAC offices as they do in our European ones…”

— Michael Hall, Employee Enablement Tech Manager, Skyscanner

Cost

Simple Integration

Stability/Reliability

UX/Interface

Interoperability Between Tools

Scalability

Support and Documentation

Other

72% COST-EFFICIENCY

59% EASE OF INTEGRATION

56% STABILITY


The #StartupStack

Get in touch and share your thoughts.#StartupStack

About Tech City UK

Tech City UK’s mission is to accelerate the growth of London and the UK’s digital economy.It focusses on areas like digital skills, smart capital investment, infrastructure, international development and leadership.

It started life in Shoreditch in 2010, launched by the UK Prime Minister David Cameron to support the East London tech cluster known as London Tech City or Silicon Roundabout. Since then it has grown its support to Greater London, Manchester and other major cities around the UK.

About Stripe

Stripe is a technology platform that developers and entrepreneurs use to build internet businesses. Thousands of businesses—ranging from startups to listed companies—rely on Stripe’s software tools to accept payments and expand globally. Since it was founded in 2010, Stripe has been at the forefront of expanding internet commerce, supporting entirely new business models and powering payments for the world’s most innovative companies, such as Deliveroo, Mondo, Kickstarter, Shopify, Salesforce and Twitter.

@Stripe

@TechCityUK


The #StartupStack

Appendix


Research background

Tech City UK and Stripe conducted a survey in June 2016 on how startups use tools.

311 responses, and more than half of these came from founders & entrepreneurs.

Focus on early-stage startups - half of respondents worked in companies with 5 or fewer staff.

Founder/entrepreneur

Software engineer

Sales manager

Product manager

Operations manager

Designer

Marketing/PR manager

Investor

Other


The #StartupStack

AppendixTools as named and categorised by survey respondents

Analytics4q by IperceptionsAdobeAlexaAlteryxAmazonAppsflyerAtlas by QuartzBIMEBing webmaster toolsBrandwatchBufferCanddiClickyConstant ContactCrazyeggDelta DNAE-TrackerFabricFacebook InsightsFivetranFlurryGeckoGoogle AnalyticsGoSquaredHadoopHerokuHootsuiteHotJarHubspotIBMImport.ioIntercomKeenIOKeyword xpKissmetricsLookerMicrosoftMixpanelMonsterInsights

MozOpen Web AnalyticsOptimizelyOraclePeriscope dataPiwikpulsarRateacoRJ MetricsSalesforceSAPSegmentSendiblesimilar webSiteCatalystSnowplowSolversproutsocialSPSSSuadeTableauUXCamWolframAlphaWordpressYahoo

AccountingFinancial ForceFreeAgentFreshBooksKashflowQuickBooksQuickenSageWaveXero

Code repositoriesBitbucketGitHubgitlabGoogle CodeJiraSourceForgeSourceTreeStashWaffle CRMAgileBaseCapsuleDynamicsGoogleHubspotInsightlyLeadscoreMailChimpOdooOne Page CRMOraclePipedriveSageSalesforceZoho

Customer supportAsanaConversocialdeskfacebookGitHubIntercomInvoice NinjaLinkedinMailChimpMicrosoft Dynamic CRMOlarkPipeDriveSlacksmpStripeTeam InboxTeam SupportTrellouservoiceZendesk CybersecurityAvastCiscoKasperskyVerizon Human resourcesCharlieHRHiredSimplydocsWorkable

Database managementAccessAmazonGoogleIBMMicrosoft AzureMicrosoft SQL Server Management StudioMySQLOracleSalesforceSQLyogSquel.js Hosting & data storageAmazon S3Amazon Web ServicesBitbucketBoxCiscoDigital OceanDropboxEngine YardGodaddyGoogle CloudGoogle DriveHadoopHerokuHostgatorIBMJuniperMicrosoft AzureMicrosoft OneDriveOVHRackspaceStrikinglyTalendUK fast

Legal & complianceDocuSign PaymentsAdyenApple PayAvangateBraintreeChargifyCurrency CloudDatacashGoCardlessGoogleHarvestIngenicoInstamojoiZettleMangopayPayoneerPayPalQuadernoRealexSagepayshopifySkrillSquareStripeTransferwiseWorldpay

RecruitmentEnteloGreenhouseLeverLinkedInTalentRocketWorkshapeWorkable

Team collaboration & communicationAsanaAtlassianBasecampCisco WebexConfluenceDropboxEvernoteFacebookFlowdockGitHubGmailGoogle AppsGoogle CalendarGoogle DriveGoogle HangoutsHipchatHuddleiMindmapinMotionIntercomJIRAMicrosoft Office 365OutlookRyverSalesforceSamepageSkypeSlackSmartsheetTrelloWaffleWhatsappYammer

the #startupstack

Technology