The Most Popular Startup Sectors
Every startup company is based on the fundamental principle of establishing a scalable business model that would provide new, innovative, or better products or services to customers than the ones currently existing in the market. In this entrepreneurial landscape, the industry varies from one or the other. The market trends in the startup sectors are evident by a number of economic indicators, such as capital venture interests as well as consumer sentiments, which can serve as vital and essential guides for those wanting to establish a startup company. It’s a good strategy for their investment planning.
Contrastingly, there are those who bravely dive right into the startup competition out of their sheer passion for their product or service. They don’t gauge the market by analyzing empirical data available from those who came before them. These kinds of people embark on their entrepreneurial journey because they truly believe that they will succeed no matter what. Nevertheless, there are plenty of opportunities for everyone in the startup arena.
Read on to find what are the most popular startup sectors in the industry today!
Financial Technology
Fintech or financial technology is an innovative new technology that seeks to improve and automate the delivery of financial services. Fundamentally, fintech helps business owners, companies, as well as individuals to manage their financial operations better by using a unique application that’s built from specialized software and algorithms, which is accessible through a browser on a computer and smartphones.
Between 2018 and 2019, fintech companies had made up 6% to 8% of the Y Combinator groups, a company that provides seed funding or small business loans for promising startup companies. These companies leverage technology to provide seamless financial service to a wide range of users and consumers alike.
B2B (Business-to-Business) Software and Services
B2B is one sector in the startup industry involving direct transactions between businesses or companies, such as manufacturers and wholesalers, as well as wholesalers and retailers. This undertaking happens in the supply chain, where one company purchases products from the other. These B2B transactions are also common in auto industry companies, as well as property management, industrial cleanup, and housekeeping companies.
These startups in the B2B Software and Services space had made up 30% to 40% of the Y Combinator groups between 2018 and 2019. In this sector, these companies provide services to a wide degree of other companies to better manage their business, as well as interact with their customer base.
Healthcare
Companies that operate in the healthcare sector provide medical services, medical insurance, manufacture of medical equipment, or facilitate the provision of healthcare patients. It is one of the largest as well most complex sectors in the U.S. economy, yet benefits from strong medical research and development of the industry. These types of startup companies that operate in this field had made up 14% to 28% of the Y Combinator groups between 2018 and 2019, which definitely increased their credit scores.
Consumer Goods and Services
Consumer goods and services comprise of companies that distribute products such as food, drugs, general items, as well as services like technical support, marketing, or transportation, among many others. These products and services are offered directly to the consumers and not as means of further economic production activity.This sector had made up 9% to 13% of the Y Combinator groups between 2018 and 2019.
Consumer Media
The sector of consumer media involves the distribution of electronic information and content that are primarily released or published by companies for consumer usage, which include online classes, video games, music, books, periodicals, as well as live-streaming platforms like Twitch and online forums such as Reddit. This sector had comprised 6% to 7% of the Y Combinator groups between 2018 and 2019.