Startup 2.0: rethinking the rules
It’s been a while since ‘move fast and break things’ was the accepted playbook for startups.
Now we’ve learned smashing up stuff hurts people and the things they really care about, the emphasis has shifted to a more mindful and ethical approach.
Speed is still important, of course, but entrepreneurs are doing it in a thoughtful and collaborative way.
Tell it to the people: D2C winning hearts and wallets
Some of the most successful startups have gone direct to consumers (D2C), rather than via high street stores. B Corp-certified Purdy & Figg was started by a nurse and horticulturist who were fed up with ‘toxic’ cleaning products. These two besties developed their own plant-based, all-in-one spray supplied in attractive, refillable glass bottles and have built a huge following almost entirely on social media, taking their business from zero to £42m turnover in just five years.
Washable rug company Ruggable is another that rode to success by surfing the algorithms of Instagram and other social media, and now employs more than 1,000 people. Founder Jeneva Bell’s inspiration to create something that looks beautiful but can be just thrown in the washing machine so there’s ‘less time clearing up mess and more time to enjoy life,’ has resonated with people all over the world.
Then there’s eco-friendly toilet paper brand Who Gives a Crap, literally on a roll, thanks to its deliver-direct-to-your-home approach and powerful give-back ethos, with half the B Corp’s profits donated to help global access to clean water and toilets. Their ‘good-for-the-planet, good-for--the-people and good-for-your-bum’ ethos has supercharged their growth and resulted in donations of more than £9m to charity.
Let’s get ‘phygital’: the everything, everywhere, all at once trend
Gone are the days when brands viewed their bricks and mortar stores and online presence as two distinct beasts – it’s all about fluidity and omnichannel strategies. British clothes brand Sosandar started as a digital-only player and reached £37m turnover by teaming up with traditional retailers M&S, Next and John Lewis, who sold the Sosandar collection via their websites. More recently, Sosandar has opened six of its own physical Sosandar-branded shops and seen a spike in online, as well as in real-life sales from the postcodes where they’re based.
The likes of TikTok Shop, Instagram Shop, YouTube Shopping, Pinterest Shopping, Clapper and Lemon8 make it easy for startups to tap into the ‘phygital’ trend, mixing and matching digital and physical retail to give customers a seamless experience.
Another example is beauty brand Made By Mitchell (MBM), launched by make-up artist Mitchell Halliday who made $1m in 12 hours on TikTok. Fans adore his inspirational story - he went from being bullied at school to having 1m+ followers on Instagram - and his vow to “represent boys in makeup”. Thanks to social media and lucrative collaborations with top brands and high street stores such as Boots, he’s a millionaire.
Eat, drink, disrupt: fresh takes and bold mashups
Subverting and stealing characteristics from other sectors is everywhere, as startups rip up the playbook and reinvent entire industries. Examples of cross-pollination in the food and drink sector include Lulu’s in Herne Hill. Featured in the movie We Live in Time starring Florence Pugh and Andrew Garfield, it morphs from cute day-time deli to cosy winebar in the evening. Greensmiths in Waterloo is a greengrocer, butcher, bakery, fishmonger and wine merchant that doubles as a café restaurant, while restaurant/ butcher’s shop mash-up Porterhouse Grill in Newcastle brings together a butcher’s counter, a quality steak house and talented chefs. And at Ferment & Flour in Warwickshire, the talented team has created a neighbourhood store, bakery and wine bar during the day that transforms into Michelin-guide listed funky Italian restaurant Bastardo’s by night.
Powered by passion
Entrepreneurs with an artisan approach, fuelled by passion, creativity, craft or heritage have almost magnetic resonance. Provenance is king - with customers eager to know where products come from and to hear the founder’s story, which often evokes powerful emotions. Authenticity is crucial to breaking through in crowded markets and disarming even the most cynical consumers.
We’re in it together: community-driven startups winning hearts and markets
Community centric growth is helping many young brands flourish, especially those with a powerful backstory or mission that resonates. The most successful aren’t just bringing customers along on the journey, they’re finding innovative ways to involve them in co-creating the product.
A perfect example of this is MBM founder Mitchell Halliday who’s quoted as saying: “The concept didn’t begin with products or aesthetics, it was always community."
Also tapping into its tribe is Gloucestershire-based laundry products brand Tallow & Ash, which netted 150,000 orders and built a community of 100,000 on social media in just 11 months. The power of its fans, who love its non-toxic, biodegradable products that smell as delicious as designer fragrances, helped it raise £1.1m in nine days via crowdfunding.
Hyper-local news outlets are also harnessing people power to reinvent a sector crippled by legacy corporations. The Mill, started by a former Times and Guardian reporter and powered by a community of intensely loyal supporters, launched as a one-man e-newsletter in Manchester five years ago. Its focus on original, in-depth stories coupled with no pop-ups or clickbait, is a winning formula that’s seen it expand to Glasgow, London, Sheffield, Liverpool and Birmingham, attracting an impressive 150,000+ email subscribers.
AI, automation and smart startup moves
It’s impossible to talk about startup trends without tipping the hat to AI and data analytic-enabled tools. AI-driven supply chains with networks connecting manufacturers and logistics teams offering real-time visibility, seamless data sharing, rapid response and predictive analysis are crucial to customer service and cost efficiencies. AI tools are also transforming the pharmaceutical industry, with startups leading the charge by tapping into this tech to dramatically speed up the development and testing of new drugs.
Startups like Need It For Tonight (NIFT), which offer 90-minute fashion home delivery from London stores, are taking full advantage of AI to offer customers hyper-personalisation. But for co-founder Simone Oloman, it’s not just about speed and convenience, it’s also the human touches such as personal styling. Even more crucial is trust: working with influencers to promote NIFT, they’ve discovered customers prefer relatable, ‘real’ people sharing what’s viewed as trusted content, rather than big celebrities or super-star influencers.
Ethical and social growth
A genuinely ethical and transparent approach to business is already a differentiator and this trend is accelerating. From making sure there’s no exploitation in supply chains through to the ethical use and handling of AI and databases, it’s massive.
Equally, pressure to be eco-aware continues to build, as the devastating consequences of man-made climate change become more visible, and those who ignore it risk alienating customers, talent and investors.
On that note, let’s take a minute to appreciate how the circular economy looks unstoppable, with the likes of second-hand fashion platform Vinted, valued at an astounding £7bn, and waste food redistributor Too Good To Go hitting a staggering 100 million registered users.
It’s proof that customers want to recycle, upcycle and buy mindfully – and that fixing things really does pay.
Startups are ditching the hype and building with intent. By fusing purpose with profit and fixing what's broken, a new wave of founders is rewriting the rules of business. The future isn’t just fast - it’s bold, disruptive, and blending purpose with profit.
Curious about what’s really happening in startups - and how to use it? Let’s chat: Sarah@PlatformAlt5.com
