3. News you need to know
The activity market for kids (WSJ): Millennials don’t just want experiences for themselves; they want experiences for their kids. These days, downtime is seen as screen time because kids naturally choose the glow of a device. Parents, particularly those with means, are trying to program nearly every second of their kids’ days. There are opportunities to create businesses around providing these activities or helping parents find and organize these activities. For instance, a former marketing executive in New York founded The Wonder, a members-only phone-free kids’ playspace.
Makeup’s new shine (Quartz): For decades, fashion magazines have pushed oil-free faces as the go-to look. Now, dewy and glossy faces are in. This trend, which started in South Korea, is expected to continue growing, especially in Western countries, where it also fits with the natural look promoted by athleisure. With consumers preferring dewy skin, demand for foundation, lip gloss, moisturizers, and creams that have highlighting and glowing capabilities will increase. The makeup industry is already valued at $532B worldwide and expected to increase by 7% the next few years (Remember: men are more likely to wear makeup these days, too). The startup Glossier, a leader in minimalist and dewy-look products, has been valued at $1B.
Affordable mobile technology (WSJ): The billions of people who don’t have smart phones might start buying used phones, as we mentioned in a Trends story last week. But they might also opt for smart feature phones, which cost $25, look like old Nokia phones, and connect to the internet. Some 370m of these phones will be sold in the next three years. Smart feature phones open up several opportunities for entrepreneurs in hardware and software, including for developing new apps or tweaking existing apps on an operating system different than iOS or Android.
The Athletic hits 500k subscribers (Bloomberg): The fast-growing sports site, which recently expanded to cover professional soccer in England, is proving that people will pay for ad-free digital sports content. The company expects to end the year with 1m+ subscribers, with average revenue per user of $64. Interested in content subscriptions? Follow Eric Stromberg on Twitter. He’s an early Athletic investor and tweets constantly about subscriptions.
The Trade Desk might be the most interesting startup to go public recently (Twitter): The company, which helps advertising agencies spend their money more effectively, went public in 2016 and continues to grow at an impressive pace. Early-stage investors have quintupled their money and analysts say there’s plenty more growth ahead for the company, which helps agencies optimize real-time bidding. Here’s how Trade Desk’s unique business model works.