Five of The Best & Most Popular Startup Sectors
Startups all draw inspiration on the principle of creating a company that can scale well while providing its customers with new or even better goods and services than what currently exists. However, some startups in other industries are more popular than others. In this case, popularity can be defined in several ways, and it should always be based on venture capital interest and industry investments. These bases can provide excellent insights which are incredibly beneficial to entrepreneurs and their early-stage startups.
Y Combinator, a well-known startup accelerator in the United States, determined a specific type of popularity by examining the breakdown of startups. It broke the type of popularity with five of the most common industries that were selected from Y Combinator’s two recent groups of admitted startups, which were the Summer 2018 and Winter 2019. This list represents a staggering total of 321 startup companies. In turn, PricewaterhouseCoopers, a multinational services network, compiled five of the most common industries from Y Combinators. They’ve also confirmed that the selected industries were consistently ranked in the top 10 for performance and growth. Here are five of the most popular startup sectors in this area:
Startup companies that currently operate in the Healthcare area make up 28 and 14 percent of the Summer 2018 and Winter 2019 Y Combinator classification. The startups in this sector would typically offer brand new ways for people to manage their well-being. Accordingly, these startups would also make it more convenient for people to track their well-being as well.
A prime example of a thriving startup that is in this area is Flo Health. Flo Health allows and helps women to track their menstrual cycles, fertility days, and ovulation. Keeps is also a great example as they offer a prescription that has been simplified and a subsequent delivery process for hair-loss medication. These are some of the startups in the healthcare area that receives the most investments.
Startup companies that operate in the Consumer Media area make up around seven and six percent of Y Combinator’s Summer 2018 and Winter 2019 groups. Consumer Media startups receive a ton of investments as they have been providing people new ways for people to interact with each other and enjoy various media.
Excellent examples of startup companies that operate in this space are live-streaming platforms like Twitch. Online communities and forums can also be excellent examples of startup companies in the Consumer Media space. One of the most popular startups in the online communities and forums area is Reddit.
Consumer Goods and Services
The startup companies that currently operate in the Consumer Goods and Service area make up nine and 13 percent of Y Combinator’s Summer 2018 and Winter 2019 groups. It’s easy to see why these startups receive one of the most investments as they provide fresh new takes on existing goods and services.
These startups also bring entirely new takes on existing goods and services to customers. Prime examples of the startups in this area include well-known food delivery services such as DoorDash and even home-sharing services like Airbnb.
The startup companies that operate in the Financial technology space make up six and eight percent of Y Combinator’s Summer 2018 and Winter 2019 groups. Financial Tech startups use and leverage technology to make various financial services more convenient and accessible. Companies like Venmo, the mobile payment service, are prime examples of why startups in the FinTech area receive one of the most investments in the startup sector.
Another good example of a thriving company in the Financial technology space is Robin Hood. Robin Hood is a financial services company that allows users to invest in stocks more conveniently and accessible.
Business-to-Business Software & Services
Last but definitely not least, the startup companies in the B2B Software and Services space make up a staggering 30 and 40 percent of Y Combinator’s Summer 2018 and Winter 2019. The startup companies in this area lead other spaces when it comes to receiving investments by a mile. This sector aims and creates services for certain companies to manage any business more efficiently.
This sector also provides a way for companies to interact with their customer base. Prime examples of the thriving companies in this sector include Asana, the project management software, and Slack, the messaging platform.