Startups are comfortably the most exciting businesses in the market. It’s in the startup space where all the innovation is happening and where the future is already being written. If you’re looking for investment potential, startups also offer you the best bang for your buck, so to speak. But which sectors should you be looking towards for the real diamonds in the rough?
With more large businesses than ever before going through restructuring and insolvency because of the pandemic, startup investment has never been more enticing. So, here are the industries you should be investing in if you really want to secure major gains in the coming months.
eCommerce
It will come as little surprise that the pandemic helped catalyse a major surge in the popularity of eCommerce businesses. As people were unable to leave their homes, online providers benefitted wildly, with Amazon alone reporting soaring profits of 220%. It underlined the fact that online retail is the future. With most of the world’s population now owning a smartphone, we’re all connected to the internet 24/7 and that’s something physical retail could never compete. So, why not invest in eCommerce now before the brick-and-mortar stores of the past become surplus to requirements?
Edtech
Educational technology is the second-fastest growing sector in the UK right now, with hybrid and remote learning seen as a viable alternative to traditional class-based teaching. The great thing about edtech is that it allows learners access to their materials 24/7, meaning they can learn at their own pace whenever they are free and ready to learn. Again, the impact of the pandemic is arguably what led to a major surge here, but it was always a sector with great growth potential.
Alternative Finance
This essentially refers to any financial business that isn’t owned or operated by a mainstream bank and takes in a range of fintech or so-called ‘challenger banks’. These institutions are able to operate without the overheads and legacy trappings of their more respected forebears so can offer more in the way of instant tech, with bank transfers allowed to happen in seconds rather than hours or days. They are also largely decentralized, which makes them more secure.
Streaming
It could be argued that the streaming market has been saturated in recent years but it continues to grow in leaps and bounds as traditional entertainment models begin to die off almost completely. By 2025, the global video-on-demand market is set to grow at a CAGR of over 12% and ad over a billion users. By 2030, it’s likely that old-school television and even the cinema might be relics of a bygone age. So invest now while there is still tread left on the tyres!
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Michael Fallquist says
These are all promising industries to get involved in, streaming being perhaps the most appealing from a content standpoint. Great insight shared!