Day: October 7, 2025

A market trend is the general direction a stock, currency or other asset is moving in over the course of time. It’s important for businesses to understand and analyze market trends so they can stay ahead of consumer demands, adjust business practices and more.

A trend can be upward, downward or sideways and can last from days to years. Governments may also skew market trends using fiscal or monetary policy. Market trends are usually shaped by investor and trader sentiment as well.

Trend analysis isn’t about relying on gut feelings or hunches – it’s about identifying shifts in consumer behavior that reveal new opportunities to grow your business. It’s about being able to anticipate what’s coming next – and then acting on it before your competitors do.

Trends can be long-term, such as the growth in demand for sustainable products, or short-term – like the rise and fall of popular baby names or fashion fads (like flare jeans or bucket hats). Some are seasonal, while others gain momentum over time – such as a growth in tech usage or a reduction in sugar consumption. Keeping your finger on the pulse of these trends reveals insights about how your consumers might change over time, and allows you to make smarter decisions about pricing, product development and marketing strategy. In fact, our 2025 US Consumer Trends Report revealed that, while consumers’ attitudes and behaviors around sustainability are growing, many are not yet making the necessary changes to their daily habits.

Investor funding is a powerful tool that can help you accelerate growth, open doors, and achieve your vision. But it isn’t the right strategy for every startup. And even if it is, you must know how to time your fundraising, navigate the complexities of term sheets, and pitch with confidence.

Pre-seed is the first round of startup financing, where entrepreneurs seek to validate their idea and build an early prototype. It’s important to set clear milestones during this stage, including thorough market research and product validation by testing with customers to prove the concept’s viability.

Seed funding is the second phase of startup financing, which helps startups with more traction and proof-of-concept. Startups seeking this form of investment should be prepared to demonstrate significant revenue growth and a path to profitability, as well as have solid team dynamics and a clear product-market fit.

In Series C and beyond, companies use funds to expand into new markets or make strategic acquisitions. This stage is often marked by intense growth pressures, with investors demanding high returns and a fast-track to an exit strategy such as an IPO or sale.

To avoid these challenges, startup founders can take a different approach by bootstrapping—using personal savings or reinvesting early profits—to launch their venture. However, many startups struggle with cash flow management and lack the liquidity to grow quickly. That’s where a digital startup banking solution such as Digits can come in handy. With a tailored dashboard that offers real-time financial transparency, startups can manage their business finances and maintain consistent cash flow with industry-leading yield and access to high limit business credit cards.