According to Forbes magazine, 90 percent of startups fail. The ANSYS Startup Program aims to fix this. With new, worldwide startups numbering in the hundreds of thousands annually (exact numbers depend on what source you use) that seems like a lot of very disappointed entrepreneurs to me.
On the opposite side of the coin, we have all heard the now famous story of Apple being born in a garage in Cupertino, CA and growing to be one of the most valuable technology companies in the world. But did you know that Disney, Harley Davidson, Hewlett-Packard, and Yankee Candle Company also got their start in someone’s garage? ANSYS too, was a startup. The company’s humble origin began in a farmhouse as Swanson Analysis Systems, Inc. (SASI) in 1970.
The 10 Percent of Startups That Are Successful
I started thinking about what makes the 10% different. What makes the 10% of startups succeed? Are their ideas so much better? Is their support system more effective? Perhaps their business plan more purposeful? We could likely debate these questions and develop many hypotheses, but one thing that common sense would tell us is that there are logical steps an entrepreneur can take to help better their chance for success.
Serious Upside for Startups
We’ve always known the impact that simulation software has on a business, including ease of use and simulation accuracy, product design cost savings, and decreased timeline to market. It seems that the startup world has the potential to gain more than anyone from these benefits.
- Ease of Use and Accuracy: Startups are building everything from the ground up and usually with small teams so the ability to design and test a product easily and accurately is a great advantage.
- Cost Savings: We’ve all seen new, cool businesses looking for funding through Kickstarter, Shark Tank, grants, or other sources, right? Simulation design and testing is drastically cheaper than creating multiple physical prototypes and will stretch that funding further.
- Reduced Timeline: Every new business wants to beat their competitor to market and get their product or technology in the hands of their customer as soon as possible. There is no faster way to design prototypes and complete testing than by using simulation software.
Despite all of this, we know that there’s one big reason why so many startups haven’t taken advantage of the huge upside that exists with simulation software — that is COST. Entrepreneurs often can’t afford simulation software in their early days, and this is the problem ANSYS set out to solve. Getting excited? I am.
ANSYS Startup Program: Investing in Startups in a Big Way
You may have noticed that earlier this week We released our new ANSYS Startup Program that aims to put simulation software in the hands of every startup that will benefit from it. We have invested in the student world of engineering for years by making simulation software available for future engineers through our Academic Program. Now it has taken this one step further by investing in today’s entrepreneurs who are trying to bring the world their vision. It truly makes perfect sense.
Take AirLoom Energy. As one of our initial Startup Program members, they are creating a product that aims to capture wind energy at a fraction of the cost. “It’s incredibly valuable for a small business like mine to have access to this kind of professional toolkit.” said Robert Lumley, founder and CEO of AirLoom Energy. “Not only has ANSYS software helped answer key product-development questions, but it’s given me the credibility to win funding. I recently received a research grant from the National Science Foundation, and a key element of my proposal was ANSYS simulation results showing my idea is feasible in the real world.”
What Startups Will Benefit from This Program?
From drones, cars, and radar to cleaning robots, toys, and healthcare devices, startups are bettering our lives everyday with their new technology and products. ANSYS is invested in helping more of these truly amazing businesses succeed through simulation software. We know that any business investing in prototypes, testing, and developing new ideas can do it faster and more cost effectively with simulation. Our vision is to improve the success rate of the entrepreneurs in our Startup Program from the global average of 10% to 40%, allowing our world to benefit from their amazing ideas. You can learn more about the ANSYS Startup Program by visiting www.ansys.com/startups.