The world of investing is changing fast, and startups are often the place where technologies and ideas emerge before eventually breaking through to public markets. Those who learn to monitor these early signals before they reach the mainstream can identify so-called hidden gems — companies with strong potential that are still “under the radar.”

Startups as the Engine of Innovation

New trends typically originate in the startup ecosystem, where small companies rapidly test technologies and models that large corporations dare to adopt only later. This is where waves such as artificial intelligence, biotech, or green energy are born. If an investor tracks these innovations in their early stages, they can capture growth before it’s reflected in the valuations of public companies. Startups either grow into future leaders or influence the direction of existing giants through acquisitions or technological partnerships.

The Most Important Sources for Investors

Key information sources include startup databases such as Crunchbase, PitchBook, CB Insights, and Dealroom. They offer an overview of funding, growth, investors, and company expansion. When analyzing, it’s worth monitoring not only the size of investments but also team dynamics, the speed of customer acquisition, and market activity (you can read an expanded explanation of analyzing company financial indicators here). Quality filters include incubators like Y Combinator or Techstars, as well as well-known VC funds such as Sequoia Capital or Andreessen Horowitz. Their portfolios often reveal which sectors are shaping the most interesting opportunities. In Europe, funds such as Credo Ventures and Seedcamp play a similar role.

Media That Set the Market’s Tempo

Beyond data, media outlets that shape the technological narrative are just as important. TechCrunch reports on new funding rounds almost immediately, The Information brings deeper analyses, and Sifted focuses on European startups. Investor newsletters offer insight into why a particular technology is accelerating. Fast signals also come from social networks: LinkedIn captures official announcements, Twitter/X reflects analyst discussions, and communities on Reddit or Discord often uncover trends even before they reach mainstream media.

Technological Trends Under the Microscope

To understand broader trends, it pays to work with analytical tools. Google Trends and Exploding Topics show what is gaining popularity among users, while the Gartner Hype Cycle helps estimate the adoption stage of a specific technology. Reports from McKinsey and Deloitte provide a longer-term view of market development. Patents are also extremely valuable: USPTO and WIPO databases reveal what companies are working on long before they talk about it publicly. Increased patent activity often precedes commercial breakthroughs and sometimes even a stock market debut.

Signals of an Approaching IPO

When a startup matures, it may head toward an IPO. You can track the pipeline of upcoming IPOs through platforms like the Nasdaq IPO Calendar and Renaissance Capital. Regulatory documents include the first financial indicators, based on which the real potential of a company can be assessed. Important signals also include activities in the pre-IPO phase: final investment rounds, rapid team expansion, or entering new markets. These factors often reveal whether a startup has healthy growth and a real chance to succeed. However, one must also consider risks — overly optimistic valuations, hype, low liquidity after the IPO, or an unproven business model can all cause high volatility (if you’re interested in the advantages and dangers of IPOs, check out our previous article).

A Systematic Approach to Selecting Companies

If you want to find your own hidden gem, work systematically. Choose a specific sector, create a list of fast-growing startups, monitor their investors, and analyze market potential as well as competition. It’s important to track growth signals: hiring, expansion, user acquisition, or revenue growth. Finally, compare the startup with publicly traded companies in the same segment. If it has a technological edge or faster growth, it may represent a promising opportunity.

A Combination of Sources for Investors

To be able to identify these opportunities consistently, it’s beneficial to combine multiple sources: professional databases (Crunchbase, PitchBook), IPO platforms (Renaissance Capital), open-source data analysis tools, and European sources such as Sifted or EIB reports. Together, they create an information network that helps capture trends before they appear on the stock market — and that is precisely where true “hidden gems” are most often born.

For more investment trends and useful tips, check out our previous articles on the AxilAcademy website.