I've written a lot about Y Combinator's success, but as any startup founder or investor knows, many startups fail.

Rebel Fund invests in the top 5-10% of new Y Combinator startups each year, so we focus on identifying and supporting the most promising technology startups in our ecosystem. Given the power law dynamic and asymmetric risk/return profile of venture capital, we worry more about our successes than our failures. Since the latter still counts, this essay will focus on the proportion of YC startups that fail.

Since YC's launch in 2005, the figure below shows the percentage of active, inactive, and public/acquired YC startups by batch.

As more startups finish, the blue bars (active) decrease significantly. By 12 years, 88% of startups have closed or exited. Only 7% of startups reach resolution each year.

YC startups by status after 12 years:

Half the startups have failed, over one-third have exited, and the rest are still operating.

In venture investing, it's said that failed investments show up before successful ones. This is true for YC startups, but only in their early years.

Below, we only present resolved companies from the first chart. Some companies fail soon after establishment, but after a few years, the inactive vs. public/acquired ratio stabilizes around 55:45. After a few years, a YC firm is roughly as likely to quit as fail, which is better than I imagined.

I prepared this post because Rebel investors regularly question me about YC startup failure rates and how long it takes for them to exit or shut down.

Early-stage venture investors can overlook it because 100x investments matter more than 0x investments.

YC founders can ignore it because it shouldn't matter if many of their peers succeed or fail ;)

Software can change any company.

Software is becoming essential. Everyone should consider how software affects their lives and others'.

Software on your phone, tablet, or computer offers many new options. We're experts in enough ways now.

Software Business Ideas will be popular by 2023.

ERP Programs

ERP software meets rising demand.

ERP solutions automate and monitor tasks that large organizations, businesses, and even schools would struggle to do manually.

ERP software could reach $49 billion by 2024.

CRM Program

CRM software is a must-have for any customer-focused business.

Having an open mind about your business services and products allows you to change platforms.

Another company may only want your CRM service.

Medical software

Healthcare facilities need reliable, easy-to-use software.

EHRs, MDDBs, E-Prescribing, and more are software options.

The global medical software market could reach $11 billion by 2025, and mobile medical apps may follow.

Presentation Software in the Cloud

SaaS presentation tools are great.

They're easy to use, comprehensive, and full of traditional Software features.

In today's cloud-based world, these solutions make life easier for people. We don't know about you, but we like it.

Software for Project Management

People began working remotely without signs or warnings before the 2020 COVID-19 pandemic.

Many organizations found it difficult to track projects and set deadlines.

With PMP software tools, teams can manage remote units and collaborate effectively.

App for Blockchain-Based Invoicing

This advanced billing and invoicing solution is for businesses and freelancers.

These blockchain-based apps can calculate taxes, manage debts, and manage transactions.

Intelligent contracts help blockchain track transactions more efficiently. It speeds up and improves invoice generation.

Software for Business Communications

Internal business messaging is tricky.

Top business software tools for communication can share files, collaborate on documents, host video conferences, and more.

Payroll Automation System

Software development also includes developing an automated payroll system.

These software systems reduce manual tasks for timely employee payments.

These tools help enterprise clients calculate total wages quickly, simplify tax calculations, improve record-keeping, and support better financial planning.

System for Detecting Data Leaks

Both businesses and individuals value data highly. Yahoo's data breach is dangerous because of this.

This area of software development can help people protect their data.

You can design an advanced data loss prevention system.

AI-based Retail System

AI-powered shopping systems are popular. The systems analyze customers' search and purchase patterns and store history and are equipped with a keyword database.

These systems offer many customers pre-loaded products.

AI-based shopping algorithms also help users make purchases.

Software for Detecting Plagiarism

Software can help ensure your projects are original and not plagiarized.

These tools detect plagiarized content that Google, media, and educational institutions don't like.

Software for Converting Audio to Text

Machine Learning converts speech to text automatically.

These programs can quickly transcribe cloud-based files.

Software for daily horoscopes

Daily and monthly horoscopes will continue to be popular.

Software platforms that can predict forecasts, calculate birth charts, and other astrology resources are good business ideas.

E-learning Programs

Traditional study methods are losing popularity as virtual schools proliferate and physical space shrinks.

Khan Academy online courses are the best way to keep learning.

Online education portals can boost your learning. If you want to start a tech startup, consider creating an e-learning program.

Conclusion

Software is booming. There's never been a better time to start a software development business, with so many people using computers and smartphones. This article lists eight business ideas for 2023. Consider these ideas if you're just starting out or looking to expand.

Scaling your startup requires answering customer demands, not growth tricks.

I cofounded Freedo Rentals in 2019. I reached 50 lakh+ ARR in 6 months before quitting owing to the epidemic.

Freedo aimed to solve 2 customer pain points:

• Users lacked a reliable last-mile transportation option.

• The amount that Auto walas charge for unmetered services

Solution?

Effectively simple.

Build ports at high-demand spots (colleges, residential societies, metros). Electric ride-sharing can meet demand.

We had many problems scaling. I'll explain using the AARRR model.

• Brand unfamiliarity or a novel product offering were the problems with awareness. Nobody knew what Freedo was or what it did.

• Problem with awareness: Content and advertisements did a poor job of communicating the task at hand. The advertisements clashed with the white-collar part because they were too cheesy.

• Retention Issue: We encountered issues, indicating that the product was insufficient. Problems with keyless entry, creating bills, stealing helmets, etc.

• Retention/Revenue Issue: Costly compared to established rivals. Shared cars were 1/3 of our cost.

• Referral Issue: Missing the opportunity to seize the AHA moment. After the ride, nobody remembered us.

Once you know where you're struggling with AARRR, iterative solutions are usually best.

Once you have nailed the AARRR model, most startups use paid channels to scale. This dependence, on paid channels, increases with scale unless you crack your organic/inbound game.

Over-index growth loops. Growth loops increase inflow and customers as you scale.

When considering growth, ask yourself:

• Who is the solution's ICP (Ideal Customer Profile)? (To whom are you selling)

• What are the most important messages I should convey to customers? (This is an A/B test.)

• Which marketing channels ought I prioritize? (Conduct analysis based on the startup's maturity/stage.)

• Choose the important metrics to monitor for your AARRR funnel (not all metrics are equal)

• Identify the Flywheel effect's growth loops (inertia matters)

My biggest mistakes:

• not paying attention to consumer comments or satisfaction. It is the main cause of problems with referrals, retention, and acquisition for startups. Beyond your NPS, you should consider second-order consequences.

• The tasks at hand should be quite clear.

Here's my scaling equation:

Growth = A x B x C

A = Funnel top (Traffic)

B = Product Valuation (Solving a real pain point)

C = Aha! (Emotional response)

Freedo's A, B, and C created a unique offering.

Freedo’s ABC:

A — Working or Studying population in NCR

B — Electric Vehicles provide last-mile mobility as a clean and affordable solution

C — One click booking with a no-noise scooter

Final outcome:

FWe scaled Freedo to Rs. 50 lakh MRR and were growing 60% month on month till the pandemic ceased our growth story.

How we did it?

We tried ambassadors and coupons. WhatsApp was our most successful A/B test.

We grew widespread adoption through college and society WhatsApp groups. We requested users for referrals in community groups.

What worked for us won't work for others. This scale underwent many revisions.

Every firm is different, thus you must know your customers. Needs to determine which channel to prioritize and when.

Users desired a safe, time-bound means to get there.

This (not mine) growth framework helped me a lot. You should follow suit.

Move people with tiny words.

Apple fanboy here.

• Macs are awesome.

• Their iPhones rock.

• $19 cloths are great.

• $999 stands are amazing.

I love Apple's microcopy even more.

It's like the marketing goddess bit into the Apple logo and blessed the world with microcopy.

I took on a 30-day micro-stalking mission.

Every time I caught myself wasting time on YouTube, I had to visit Apple’s website to learn the secrets of the marketing goddess herself.

We've learned. Golden apples are calling.

Cut the friction

Benefit-first, not commitment-first.

Brands lose customers through friction.

Most brands don't think like customers.

• Brands want sales.

• Brands want newsletter signups.

Here's their microcopy:

• “Buy it now.”

• “Sign up for our newsletter.”

Both are difficult. They ask for big commitments.

People are simple creatures. Want pleasure without commitment.

Apple nails this.

So, instead of highlighting the commitment, they highlight the benefit of the commitment.

Saving on the latest iPhone sounds easier than buying it. Everyone saves, but not everyone buys.

A subtle change in framing reduces friction.

Apple eliminates customer objections to reduce friction.

Less customer friction means simpler processes.

Apple's copy expertly reassures customers about shipping fees and not being home. Apple assures customers that returning faulty products is easy.

Apple knows that talking to a real person is the best way to reduce friction and improve their copy.

Always rhyme

Learn about fine rhyme.

Poets make things beautiful with rhyme.

Copywriters use rhyme to stand out.

Apple’s copywriters have mastered the art of corporate rhyme.

Two techniques are used.

1. Perfect rhyme

Here, rhymes are identical.

2. Imperfect rhyme

Here, rhyming sounds vary.

Apple prioritizes meaning over rhyme.

Apple never forces rhymes that don't fit.

It fits so well that the copy seems accidental.

Add alliteration

Alliteration always entertains.

Alliteration repeats initial sounds in nearby words.

Apple's copy uses alliteration like no other brand I've seen to create a rhyming effect or make the text more fun to read.

For example, in the sentence "Sam saw seven swans swimming," the initial "s" sound is repeated five times. This creates a pleasing rhythm.

Microcopy overuse is like pouring ketchup on a Michelin-star meal.

Alliteration creates a memorable phrase in copywriting. It's subtler than rhyme, and most people wouldn't notice; it simply resonates.

I love how Apple uses alliteration and contrast between "wonders" and "ease".

Assonance, or repeating vowels, isn't Apple's thing.

You ≠ Hero, Customer = Hero

Your brand shouldn't be the hero.

Because they'll be using your product or service, your customer should be the hero of your copywriting. With your help, they should feel like they can achieve their goals.

I love how Apple emphasizes what you can do with the machine in this microcopy.

It's divine how they position their tools as sidekicks to help below.

This one takes the cake:

Dialogue-style writing

Conversational copy engages.

Excellent copy Like sharing gum with a friend.

This helps build audience trust.

Apple does this by using natural connecting words like "so" and phrases like "But that's not all."

Snowclone-proof

The mother of all microcopy techniques.

A snowclone uses an existing phrase or sentence to create a new one. The new phrase or sentence uses the same structure but different words.

It’s usually a well know saying like:

To be or not to be.

This becomes a formula:

To _ or not to _.

Copywriters fill in the blanks with cause-related words. Example:

To click or not to click.

Apple turns "survival of the fittest" into "arrival of the fittest."

It's unexpected and surprises the reader.

So this was fun.

But my fun has just begun.

Microcopy is 21st-century poetry.

I came as an Apple fanboy.

I leave as an Apple fanatic.

Now I’m off to find an apple tree.

Cause you know how it goes.

(Apples, trees, etc.)

This post is a summary. Original post available here.

This season's three best money moves.

“Millionaires are made in recessions.” — Time Capital

We're in a serious downturn, whether or not we're in a recession.

97% of business owners are decreasing costs by more than 10%, and all markets are down 30%.

If you know what you're doing and analyze the markets correctly, this is your chance to become a millionaire.

In any recession, there are always excellent possibilities to seize. Real estate, crypto, stocks, enterprises, etc.

What you do with your money could influence your future riches.

This article analyzes the three key markets, their circumstances for 2023, and how to profit from them.

Ways to make money on the stock market.

If you're conservative like me, you should invest in an index fund. Most of these funds are down 10-30% of ATH:

In earlier recessions, most money index funds lost 20%. After this downturn, they grew and passed the ATH in subsequent months.

Now is the greatest moment to invest in index funds to grow your money in a low-risk approach and make 20%.

If you want to be risky but wise, pick companies that will get better next year but are struggling now.

Even while we can't be 100% confident of a company's future performance, we know some are strong and will have a fantastic year.

Microsoft (down 22%), JPMorgan Chase (15.6%), Amazon (45%), and Disney (33.8%).

These firms give dividends, so you can earn passively while you wait.

So I consider that a good strategy to make wealth in the current stock market is to create two portfolios: one based on index funds to earn 10% to 20% profit when the corrections end, and the other based on individual stocks of popular and strong companies to earn 20%-30% return and dividends while you wait.

How to profit from the downturn in the real estate industry.

With rising mortgage rates, it's the worst moment to buy a home if you don't want to be eaten by banks. In the U.S., interest rates are double what they were three years ago, so buying now looks foolish.

Due to these rates, property prices are falling, but that won't last long since individuals will take advantage.

According to historical data, now is the ideal moment to buy a house for the next five years and perhaps forever.

If you can buy a house, do it. You can refinance the interest at a lower rate with acceptable credit, but not the house price.

Take advantage of the housing market prices now because you won't find a decent deal when rates normalize.

How to profit from the cryptocurrency market.

This is the riskiest market to tackle right now, but it could offer the most opportunities if done appropriately.

The most powerful cryptocurrencies are down more than 60% from last year: $68,990 for BTC and $4,865 for ETH.

If you focus on those two coins, you can make 30%-60% without waiting for them to return to their ATH, and they're low enough to be a solid investment.

I don't encourage trying other altcoins because the crypto market is in crisis and you can lose everything if you're greedy.

Still, the main Cryptos are a good investment provided you store them in an external wallet and follow financial gurus' security advice.

Last thoughts

We can't anticipate a recession until it ends. We can't forecast a market or asset's lowest point, therefore waiting makes little sense.

If you want to develop your wealth, assess the money prospects on all the marketplaces and initiate long-term trades.

Many millionaires are made during recessions because they don't fear negative figures and use them to scale their money.