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How to Choose the Right Type of Animated Video for Your Startup

Adam SheltonUpdated 2 September 2026

Discover how to select the perfect animated explainer video for your startup. Boost engagement and conversions with the right visual storytelling approach.

Illustration of a businessman carried by a lightbulb hot-air balloon towards a flag on a summit

Considering animated explainer videos for your startup? You've made a smart choice. Animated content offers a wealth of possibilities, but the key lies in selecting the right video type to suit your unique brand and message. As a startup, it can be overwhelming to navigate the world of video content and figure out the right type for your business.


Animated videos are a powerful tool for startups, targeting investors and crowdfunding companies. With a short, engaging, and informative video, you can effectively communicate your startup idea and get potential investors excited about your company.


But with so many types of animated videos available, how do you know which one is right for your startup? Whether you have a new product, software, offering a service, or training courses, there are specific types of animated videos that work best for each. In this blog, we’ll go through each type of video and give you tips and advice on how to maximise the potential of your animated video.

Importance of animated videos for startups

  • Wyzowl: 95% of marketers said that video marketing helped them increase brand awareness.
  • Wyzowl: 91% of people have watched an explainer video to learn more about a product or service.
  • Wyzowl: 82% of people have been convinced to buy a product or service by watching a video. 
  • Fundera: Crowdfunding campaigns with videos earn 105% more than those without videos. 
  • Optinmonster: 87% say video marketing has helped them increase sales.
  • Optinmonster: 96% of video marketers say video marketing has increased internet users' understanding of their product or service.



Key takeaways

Ultimately, video content is engaging, attention-grabbing and a convenient way for audiences to receive and digest information. With more people spending time online than ever before, you need to capture your audience's attention and gain a competitive edge in the crowded digital landscape. The consistently high figures in the data confirm the importance of video marketing and the positive impact it can create for marketers and investors alike.

Understanding Your Goals and Audience


What makes a truly successful animated video is its ability to resonate with the right audience. For example: you create an impressive explainer video for a groundbreaking healthcare product. The metrics look promising – high view counts and impressive reach but engagement rates remain low. So, has this campaign really been a success?

Many new startups often face this challenge of disconnect between their content and their target audience. The key here is to be specific in your targeting strategy. Therefore, rather than reaching a large audience group, focus on those who are most likely to benefit from your healthcare innovation. Your video campaign needs to focus on industry professionals and users within the healthcare sector to spark meaningful engagement.

Remember, it's not just about who sees your video, but who interacts with it. When you align your content with the right audience, you'll see a noticeable rise in engagement. And it's this engagement that ultimately paves the way for conversions, turning viewers into valuable leads and investors.

Matching Video Types to Specific Startup Needs

Animated Product Videos


Product videos
allow you to promote and explain your products in a simple yet effective way. People like to visually see the product first before learning more about it. Here are the benefits of creating a product explainer video:

  • Help viewers visualise the product 
  • Demonstrates how the product works
  • Breaks down complicated features into easy-to-understand visuals
  • Evokes desired feelings associated with your product.


Animated Service Videos


Animated service explainer videos
can help improve your target audience's understanding of your service. Here are the key benefits of using animated videos to promote a new service:

  • Brings abstract service ideas to life through visual metaphors
  • Shows processes and workflows that are otherwise difficult to explain
  • Emphasise what sets your service apart from competitors
  • Showcases benefits in a memorable and visual format
  • Visual aids can help clarify how your service works
  • Tells a story that resonates with your target audience's pain points

Animated Software Explainer videos


Animated software explainer videos allow you to demonstrate new software developments, applications and new systems in a simple yet informative way. Here are the key benefits of using animated videos to promote new software:

  • You can demonstrate user interface and features in action
  • Breaks down complex technical features into understandable visuals
  • Creates tailored scenarios for various user roles or industries
  • Visually represents how the software works with other tools or systems
  • Shows how the software solves real-world user problems

Animated Training videos


Animated explainer videos for training
purposes allow you to transform your content into informative and educational videos for a wide range of audiences. Here are the key benefits of using animated videos for training and education:

  • Demonstrates the effectiveness of your training methods visually
  • Presents complex topics and subjects in an easily digestible format
  • Showcase case studies or success stories in an engaging visual format
  • Appeals to visual and auditory learners
  • Develop relatable scenarios that resonate with your target audience
  • You can use data visualisations to show measurable results


And finally… 


Don't underestimate the power of animated videos in today's digital age. With crowdfunding and social media platforms becoming increasingly popular for startups, having a visually appealing and engaging video can make all the difference in capturing attention and standing out from the competition. No matter what type of startup you have, our team at Squideo can help you create an animated explainer video that suits your needs and helps you achieve your goals.

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