Venture capital funding is one of the top financing sources for startups. However, it can be difficult to secure this kind of funding. Venture capitalists receive thousands of pitches in from a number of industries. This is one of the things to consider before putting money to a startup. Undoubtedly, certain industries are receiving a large influx of investment as VCs compete to make a impact. As an entrepreneur, you could increase your chances of raising capital depending on your industry. To start attracting VCs, here are the top industries that venture capitalists are investing in.
Venture capitalists have been investing in the software industry in a big way. This is nothing new. Software investments have been a top VC investing industry for a number of years. Within the last year, over 60% of all VC investments were dedicated to software companies and other industry actors. This was the largest area of venture capitalist investment by over 18 points. Software businesses have a much easier time finding venture capitalist financing. They operate within the top industry that venture capitalists are investing in for the last couple of years.
Artificial Intelligence Industry
The AI industry is one of the most popular industries for venture capitalist investments. It accounts for a large percentage of VC investments made over the last year. Artificial intelligence technology is one industry that can be used throughout a wide array of other businesses and industries. That is what makes it such a great investing opportunity for venture capitalist firms. The broad capabilities of artificial intelligence startups and other AI businesses make them one of the most common industries that venture capitalists invest in.
Venture capitalists are also investing in the biotechnology industry in substantial numbers. Biotechnology is an innovative field. That is one of the things that makes the it such an popular VC investing industry. Over 9 billion dollars were invested in the biotechnology industry in the last year alone. This year, venture capitalist investing shows no signs of slowing down. For biotechnology companies needing to raise money, the prevalence of VC investing in the biotechnology industry is quite a significant advantage.
The media and entertainment industry has been one of the top 5 industries that venture capitalists are investing in for the last few years. With the rise of digital entertainment platforms and social media, there is a higher demand for entertainment than ever before. The world consumes media at rates never before seen. Venture capitalists have taken notice. That is one of a number of reasons why the entertainment and media industry is one of the top industries raising the most venture capital.
The pharmaceutical industry is another top sector receiving the most venture capital investments. In certain countries, healthcare has become a priority. Pharmaceutical demands have exploded as a result. The growth of the pharmaceuticals industry is what makes it such an enticing opportunity for many of the top VC investors around. The data also backs this up. Pharmaceuticals investments accounted for over 30% of venture capitalist investing in the last decade. This is one of the the longest standing sectors in the top 5 industries that venture capitalists are investing in.
Startups require a ton of business capital to grow and succeed. Unfortunately, it can be extremely difficult for certain businesses to secure VC financing. There are some top industries that raise the the most venture capital, though. Software, AI, biotechnology, entertainment and media and pharmaceutical companies will have a much easier time raising venture capital. These are the top 5 industries that venture capitalists are investing in. Startup owners and entrepreneurs on a global path within these fields are much more likely to receive venture capital investments to help fund their growth and expansion.