18 Hottest Start-up Industries Investors are Looking to Fund

During my meetings with VCs, I have always asked the question: 'what is the hottest industry right now for you to invest - for which you are willing to take most risk'. There are several different start-up ideas which investors are looking to fund, although some of these businesses are difficult to break into and can also be difficult to establish. However, with hard work as well as dedication it is possible for you to become the next giant in one of these businesses. The following start-up ideas should be considered when you are thinking about the business types that investors are looking to invest in.

1. AI

While artificial intelligence is still in its infancy and it is a groundbreaking technology, there have been no significant breakthroughs. What this means for you is that if you have the right ideas, and the resources that you need, you could really start shaking things up. When a business shows promise in the AI sector, they tend to get the attention of the military as well as the government who of course have plenty of money which can be invested.

2. Robotics

While this sector has been established for a while it has not reached it’s peak as of yet. Robotics is used in the manufacturing world as well as in many applications in the military. Robotics is expected to begin developing very quickly in the consumer market, which is where start-ups need to focus if they are looking for funding. If a person is looking at a start-up in the robotics sector, they will also need to consider that software creation is a key factor.

3. Biotech

Seeing rapid gains in the past few years when it comes to investment, the biotech sector focuses on ensuring that humans are free of disease and that they are able to stay young. Because there are some moral questions that come into play when you work in the biotech sector, if you have an idea that is ethical as well as revolutionary, you could achieve great success.

4. Healthcare

The healthcare sector is looking for new start-ups which are going to be able to help people save money. One of the areas in the healthcare sector that a new start-up could enter is medical insurance, of course the start-up would have to have a great idea and ensure that they had enough funding to actually make a difference. However, preventative healthcare would be a great place for a new start-up to provide patients with realistic solutions.

5. Pharmaceuticals

Medicine needs to be developed in a way that reduces the cost and more quickly. Preventative drugs, in particular, are in need of not only new talent but also investment. If you have a pharmaceutical background, this may be the sector for you.

6. Food

Today, many people are showing a growing concern due to the number of additives that are not only in the food that they are eating but the water that they are drinking as well. There is a huge market for not only organic food, but water as well and the new start-ups in this sector are doing quite well.

7. Education

The education system is always changing and today I can guarantee that it is completely different from when you were in school 10, 20, or 30 years ago. The changing technology is always influencing the way that teachers teach their class. If you are a new start-up that is looking into the education sector, there are a huge number of opportunities out there for you that could change the way people are taught.

8. Internet

We all know that the internet is far from perfect, and we know that it is vulnerable to many different types of threats from many different sources, including hackers, natural disaster and even the government. Start-ups who are looking to get into the internet infrastructure sector really need to focus on security. If something is going to make the user’s data more secure, is going to be attractive to the user as well as investors.

9. Government

Those start-ups that are completely focused on working for the government are extremely valuable. The reason for this is because many of the systems that the governments are using are completely out of date. Start-ups that are able to propose an idea to the government where they can offer to make the systems more efficient usually receive financial backing

10. VR and AR

There was a time when VR and AR were only things that we saw in movies and dreamed of using but now they are actually here and while they may sound intimidating, they really should not be. If you are experienced in the VR or AR field, meaning that you can produce software for business applications, then you are needed in this sector.

11. Science

Because the majority of labs are funded by the government or large companies, many who are considering a start-up in science are going to find it difficult to thrive. However, it is important to know that if you have a great idea you do have a good chance of getting backed by an independent lab.

12. Transportation

We have seen a shift in the transportation sector from large SUV’s to smaller vehicles that run off of clean energy. What this means is that there is a place for new start-ups to enter into the transportation sector and make a huge difference. When any sector is in the early stages, innovative ideas are not only welcomed but they are vital. There are some big players that are exploring different ideas in this sector, but don’t let that scare you, because they are not the leaders in the transportation field

13. Programming

Programming has been a great sector for start-ups for a very long time and it is going to continue to be for a very long time. While there is a lot of talent already in this sector, there is always room for more. The great thing about this sector is that you are not going to need huge amounts of funding in order to be successful, in fact, you can work right from your living room and if you have the right ideas, you can make it big.

14. Diversity

The fact is that certain demographics have always seemed to be less socially and financially successful however, there are opportunities for start-ups to help shift this when it comes to jobs and education.

15. Developing Countries

There are many developing countries that are providing start-ups with huge opportunities because the countries are struggling with a high demand for the improvement of the quality of life, poor infrastructure and logistics.

16. Business Software

The market for consumer software tends to move a lot quicker than the market for business software which means that a lot of large businesses are using bad software that needs to be improved in order to cut costs. Start-ups that are looking to improve business software are going to be able to find a lot of funding because businesses know that in the long run it is going to save them a ton.

17. Financial Services

This sector is completely open for new start-ups that want to focus on those that are lower to middle class. While there are plenty of investment services out there for the rich, we have to remember that those who have less income are looking to invest as well. This means that there is a huge number of potential customers just waiting to be tapped into.

18. Telecommunications

We already have Whatsapp and Skype, but what is going to be next? There have been no breakthroughs in the telecommunications sector in a long time, however, if a start-up has a great idea, they could not only find the funding they are looking for but make it big in this sector.