5 Startup Sectors That Got the Most Funding in 2020
The business climate for most startups in 2020 has been a difficult one, no thanks to the COVID-19 pandemic that crippled economic activities. However, despite the pandemic, some startups have enjoyed massive funding.
Although you can start a business in any sector and succeed, some sectors are more likely to enjoy better funding than others. Hence, if you are thinking of starting up a business, it is important first to consider some startup sectors that enjoyed the most funding in 2020.
- Health Technology
As technology continues to improve, the health sector is also not left behind. Technology is improving healthcare delivery by giving patients more control over their health and helping experts develop pharmaceuticals to make them more efficient and accurate.
Health technology covers a wide variety of sectors, including drug development, biotechnology, wellness, and health apps, and healthcare SaaS tools, to mention a few. The health technology sector is yet to be fully explored, explaining why it is currently enjoying massive funding.
Although breaking into the health technology sector is tasking and requires you to understand the nature of challenges healthcare professionals face, your solution is more likely to enjoy faster funding.
- Micro Mobility Technology
In recent times, e-scooter and bike rental services have grown to become widespread in urban areas. As a result, big transport companies are now beginning to invest in this sector, with mobility giants like Alphabet, Ford, and Uber leading the move.
Even though top mobility giants are already in the sector, there are still many opportunities waiting to be explored. With many investors willing to invest in the micro mobility sector, lots of startups enjoyed massive funding.
Experts say the micro mobility sector is expected to be worth up to $500 billion by 2030, which explains why the sector is enjoying funding from investors.
- Agricultural Technology
As the world’s population continues to increase, feeding, on the other hand, is also becoming a challenge. Experts have projected that unless there are interventions, we will only be able to produce food for half of the world’s population by 2050.
Although the agricultural technology sector has enjoyed massive funding since 2018, it has continued to get bigger with each passing year. As with the health technology sector, agricultural technology is also a broad sector as it ranges from food production to delivery.
Some agritech startups have also been involved in drone watering, vertical farming, and many more. Interestingly, more innovations are still needed to enhance cheaper and faster food production.
Fintech has, in recent times, produced many startups, and it is not surprising that it is still enjoying massive funding. Experts have predicted that the Fintech sector will grow to about $26.5 trillion by 2022.
While the major challenge most Fintech startups face is security and compliance, solutions like Blockchain help solve that issue. Once you can get around the compliance and security issues, you will need to choose a specific niche to build on.
It is worth mentioning that the Fintech sector is crowded. However, if you can develop a solution that will provide a unique value, investors will always fund your startup.
- Artificial Intelligence
Presently, artificial intelligence is the sector that is driving other sectors. Unlike other technologies, artificial intelligence usage applies to all other sectors.
As a result of this, startups in the AI sector are enjoying massive funding. Since the AI sector is still yet to be fully tapped into, any startup in the artificial intelligence sector is guaranteed to enjoy funding.
All in all, any great idea in any industry can grow into a huge success. If you already have an idea that does not fall under any of the sectors mentioned above, it does not mean you will not enjoy funding.
While these sectors have enjoyed massive funding in 2020, you never can tell which sectors will enjoy fu doing in the next year.