Venture capital (VC) money doesn’t go everywhere—it follows patterns. If you’re planning to build a startup, knowing which industries attract the most VC funding can give you a major edge. In this article, we break down 30 critical statistics—each showing how much venture capital flows into different industries—and explain what this means for you. Whether you’re a founder, investor, or simply curious, this guide walks you through each major sector and how you can take advantage of the trends.
1. In 2023, AI startups attracted over $50 billion in global venture capital funding
Why AI Dominates VC Conversations
Artificial Intelligence (AI) is more than just hype. It’s revolutionizing how businesses operate, and VCs are taking notice. In 2023, AI startups pulled in over $50 billion in venture capital globally. This huge number isn’t random—it’s a signal. AI is seen as the future, and investors are betting big.
From generative AI tools to machine learning systems that make sense of big data, startups in this space are building tools that touch every industry—from healthcare to customer service to logistics.
How to Start Strong in AI
If you’re building an AI startup, start by narrowing your focus. Don’t try to build a general AI. Instead, solve a real problem in a niche industry. For example, AI tools that help radiologists detect anomalies in X-rays are getting serious attention because they solve a clear, expensive problem.
Focus on data—VCs love AI startups that have access to unique, clean datasets. Without good data, AI doesn’t work well. If you already have access to industry-specific data, that’s a major asset. Use it.
What Investors Look for in AI Startups
- A clear niche use-case
- Proprietary data or access to data sources
- A founding team with AI or domain expertise
- An MVP that shows real results, not just a concept
Actionable Advice
- Talk to potential customers before building. AI is powerful, but if it solves the wrong problem, nobody will pay for it.
- Think about regulatory compliance early, especially in industries like finance or healthcare.
- Keep it simple—show how your AI tool saves time, cuts cost, or boosts revenue.
2. Fintech startups received approximately $75 billion in VC funding globally in 2022
Why Fintech Keeps Winning
Money makes the world go round, and fintech startups are modernizing how money moves. With $75 billion in funding in 2022, fintech remains a favorite of venture capital firms.
Why? Because financial services are ripe for disruption. Traditional banks are slow, expensive, and outdated. Fintech startups offer faster payments, easier loans, borderless transactions, and smart budgeting.
How to Win in Fintech
Look for pain points. People are tired of hidden fees, complex banking interfaces, and outdated processes. If you can build a better user experience, you’re already ahead.
Start with underserved audiences. For example, freelancers and gig workers often lack access to credit. A startup that builds a lending platform just for them can easily stand out.
What VCs Want in Fintech Startups
- Strong security protocols (you’re dealing with money)
- Scalable infrastructure
- Clear monetization (such as subscription fees, transaction fees)
- Regulatory readiness (you’ll need licenses in many markets)
Actionable Advice
- Partner with regulated entities instead of building everything from scratch—this saves time and reduces risk.
- Focus on mobile-first experiences—many users in developing markets access financial tools through their phones only.
- Show traction with real users. Even a few thousand active users with high retention rates can catch investor interest.
3. Healthcare and biotech startups raised around $60 billion from VCs in 2022
Why Health and Biotech Are Hot
Healthcare affects everyone, and the biotech space offers solutions that can literally save lives. That’s why these sectors attracted about $60 billion in VC funding in 2022.
But they’re not easy markets. There are regulations, trials, and complex science involved. Still, investors see the long-term value. A drug or device that works can scale globally and earn billions.
Where to Focus in Healthcare Startups
Telehealth platforms, wearable diagnostic tools, and mental health solutions are all booming. Post-COVID, the need for virtual care exploded, and it’s not going away.
In biotech, personalized medicine and gene-editing tools like CRISPR are getting massive attention.
How to Break In
If you’re non-technical, partner with medical or research experts. Biotech startups especially need deep scientific knowledge. But you can still contribute by focusing on the business side—compliance, fundraising, partnerships.
Actionable Advice
- Validate your idea with doctors, not just users.
- Understand regulatory pathways early (FDA approval, etc.).
- Don’t hide behind complex terms—simplify your pitch for investors.
4. Enterprise SaaS companies drew $45 billion in VC funding in 2021
Why SaaS Still Dominates
Software-as-a-Service (SaaS) isn’t new, but it continues to attract massive investment. In 2021, enterprise SaaS raised $45 billion. That’s because businesses of all sizes need software tools to run smoother, automate tasks, and grow faster.
SaaS models are attractive to investors because they generate recurring revenue. Once a customer signs up, they often stick around for years.
Building a SaaS Startup that Stands Out
Choose a niche. A generic CRM won’t stand out today. But a CRM for solar panel installers or veterinary clinics? That’s different. The more specific your solution, the easier it is to build traction.
Focus on onboarding. Many SaaS tools fail because users don’t know how to use them. Make it dead simple for new users to get value in the first session.
What VCs Love About SaaS
- Predictable monthly recurring revenue (MRR)
- High customer retention
- Scalable architecture
- Vertical SaaS—tools built for specific industries
Actionable Advice
- Start with a manual process—validate your tool before building the full product.
- Use feedback loops from your first 100 users to improve fast.
- Offer integrations with tools your users already use (like Slack, QuickBooks).
5. Climate tech startups received $40 billion in global VC investment in 2022
Why Climate Tech is Exploding
The climate crisis is not a future problem—it’s already here. And investors know it. With over $40 billion invested in climate tech in 2022, venture capital firms are betting that startups will lead the charge in solving some of the planet’s biggest problems.
From carbon capture systems to battery technology and sustainable agriculture, this industry touches every part of how we live, eat, travel, and build.
What Makes Climate Tech Attractive to VCs
Venture capitalists are drawn to climate tech for both impact and returns. Not only do they get a shot at investing in the next Tesla or Beyond Meat, but they also align with ESG (Environmental, Social, and Governance) goals. That matters for funds with environmental mandates.
In many regions, there’s also strong government support, grants, and tax incentives—making it a less risky bet for investors.
How to Enter the Climate Tech Space
Start small. You don’t need to build a nuclear fusion reactor. Begin with a focused solution—like reducing energy usage for a specific industry, or making a sustainable packaging alternative for food brands.
Also, talk to your local government. Many cities and countries offer startup funding, test pilots, or access to labs for green tech entrepreneurs.
Actionable Advice
- Find corporate partners early—many large companies are under pressure to meet sustainability targets and are actively looking for solutions.
- Make sure your product has a clear business case. Green doesn’t sell on emotion alone; it has to save or make money.
- Don’t build alone. Join climate accelerators and communities where you can get mentorship and exposure.
6. Cryptocurrency and blockchain startups raised $33 billion in 2022
Why Crypto Keeps Attracting Capital
Despite market volatility, crypto and blockchain startups raised $33 billion in 2022. Why? Because the core technology—decentralization—has the power to reshape everything from finance to gaming to identity.
While the hype has cooled, the interest in real use-cases has grown. Investors are no longer throwing money at “just another token.” They’re backing startups with serious infrastructure, compliance systems, and real users.
What Works in Web3 Today
There’s a growing demand for blockchain solutions beyond coins—think supply chain transparency, NFT platforms for creators, or decentralized identity tools.
Regulated crypto exchanges, Web3 infrastructure tools (like wallet APIs), and DAOs for niche communities are attracting VC attention.
Building in Crypto Without the Hype
Focus on usability. Many blockchain tools still feel clunky. If you can make them as easy as apps people already use, that’s a big win.
Also, compliance is no longer optional. If your crypto product touches fiat money or user identity, you’ll need legal support and possibly licenses.
Actionable Advice
- Avoid anonymous teams—VCs now prioritize transparency and legal clarity.
- Build for utility, not speculation. Investors now want products people need.
- Prioritize education. Most users still don’t fully understand blockchain—if you can teach and onboard them simply, you’re valuable.
7. E-commerce startups secured around $30 billion in venture funding in 2021
Why E-Commerce Still Works
Shopping has changed forever. Even after the pandemic boom, e-commerce continues to pull in serious venture funding—$30 billion in 2021 alone.
While giants like Amazon dominate general retail, there’s still huge opportunity in niche e-commerce, direct-to-consumer brands, and tools that support online sellers.
Where the Opportunities Are
Startups that help e-commerce businesses run smoother—logistics, returns, personalization, payments—are red hot. So are brand-new product categories built around passion communities or underserved audiences.
Think: eco-friendly home goods, skincare for specific skin types, or pet accessories with a modern twist.
Building a Scalable E-Commerce Startup
Don’t try to sell to everyone. Instead, build a brand that deeply understands one customer segment. Use storytelling, great design, and real-world product benefits to hook buyers.
Also, think long-term. E-commerce success isn’t just about a pretty website—it’s about margins, repeat purchases, and operational efficiency.
Actionable Advice
- Build your brand on one strong hero product before expanding.
- Leverage user-generated content—it builds trust and lowers ad costs.
- Invest early in tools for shipping, returns, and customer service. Investors love smooth operations.
8. Edtech companies raised $20 billion globally in 2021
Why Learning is Big Business
The education industry is evolving, and edtech is leading the way. With $20 billion in global VC investment in 2021, startups in this space are being seen as the future of learning—for kids, adults, and professionals.
Remote learning, personalized content, and skill-based micro-learning are just a few of the trends reshaping how we learn.
What Edtech Investors Look For
Investors want proof that your platform actually helps users learn better or faster. They look for strong engagement metrics—completion rates, session times, retention—and often prefer products that are B2B (sold to schools, companies, or institutions).
Consumer edtech is also growing, but it’s harder to scale without strong brand loyalty and content quality.
How to Build a Great Edtech Product
Don’t try to replace the entire school system. Instead, build tools that solve one pain point. For example, a platform that helps students prep for math exams, or an app that helps HR teams upskill employees quickly.
Gamification helps. People learn better when it feels fun. And mobile-first design is key—many users access edtech platforms via their phones.
Actionable Advice
- Partner with educators and curriculum experts—your tech must align with how people learn.
- Offer a freemium model to build a user base before monetizing.
- Track your impact. If you can prove better outcomes, it’s easier to raise capital and grow.
9. Transportation and mobility tech, including EVs, attracted $35 billion in VC in 2022
Why the Way We Move is Changing
From electric scooters to autonomous trucks, transportation is being reinvented. In 2022 alone, mobility and EV startups attracted $35 billion in venture capital.
The big driver? Sustainability. With cities cracking down on emissions and consumers demanding better alternatives, this space is buzzing with innovation.
Hot Areas in Mobility Right Now
Startups working on EV battery technology, fleet management software, urban mobility (like shared bikes), and autonomous delivery vehicles are pulling in the most interest.
Even solutions that support EV growth—like charging infrastructure or second-life battery systems—are getting attention.
Breaking Into This Sector
Hardware is hard, but investors still love bold visions in mobility. If you’re building in this space, make sure you have prototypes, partnerships, or pilot projects. Real-world traction is key.
You can also enter through software—think apps for route optimization, EV fleet tracking, or consumer booking systems.
Actionable Advice
- Team up with cities or logistics companies for pilot programs.
- Get insurance and liability issues sorted early—they’re a big concern in mobility.
- Don’t ignore regulations—they vary widely by location and can make or break your business.
10. Cybersecurity startups secured $26.5 billion in global VC funding in 2021
Why Security is a Priority
Cyber threats are rising, and companies are spending more than ever to protect their data. That’s why cybersecurity startups pulled in $26.5 billion in 2021.
As more work moves online, and as threats become more sophisticated, demand for new tools continues to grow—especially those that are easy to use, deploy, and scale.
Where the Gaps Are
Traditional security tools are built for large enterprises. Small and mid-sized businesses are often left out. Startups that simplify security for smaller teams are seeing real traction.
There’s also growing demand for solutions in identity management, endpoint protection, and cloud security.
Getting Started in Cybersecurity
This is a trust-heavy industry. Founders need to show credibility—either through past experience or early enterprise customers.
You’ll also need to demonstrate your product works under pressure. Live demos, test environments, and third-party audits go a long way.
Actionable Advice
- Focus on one use-case and get it right before expanding.
- Make your pricing and deployment model simple—many companies are overwhelmed by complex security tools.
- Offer integrations with common platforms like Microsoft 365, AWS, and Google Workspace.
11. Foodtech and alternative protein startups raised $10 billion globally in 2022
Why Food Innovation Attracts Investors
How we produce and consume food is changing. With sustainability and health at the forefront, foodtech—especially alternative proteins—is a growing force. In 2022, this space attracted $10 billion in venture capital funding.
Investors are interested in startups that can feed the world without damaging the planet. Whether it’s lab-grown meat, plant-based dairy, or smarter supply chains, foodtech is no longer a niche.
What Gets Funded in Foodtech
Products that can scale, taste good, and are priced competitively catch attention. It’s not enough to have a cool lab-grown burger—it has to taste great and be affordable.
Supply chain innovation is also hot. Think platforms that reduce food waste, improve traceability, or automate inventory for restaurants and grocers.
Entering the Market
Start with a specific consumer or problem. For instance, if lactose intolerance is common in a market, a plant-based milk alternative could gain traction fast.
Taste matters. So does nutrition. Consumers today read labels and compare options. Work closely with food scientists or partner with co-manufacturers to nail the product before launch.
Actionable Advice
- Test locally before scaling—get feedback, iterate, then expand.
- Get certifications early (organic, vegan, allergen-free) to build trust.
- Use storytelling—people love to connect with mission-driven food brands.
12. Space tech startups attracted $15 billion in VC funding in 2021
Why Space is No Longer Just for Governments
Space isn’t just for NASA or billionaires anymore. In 2021, space tech startups raised $15 billion in venture capital. That includes satellite tech, launch platforms, and space-data startups.
What changed? Costs dropped. Innovation increased. And commercial applications—from Earth observation to satellite internet—are now real business opportunities.
Where Startups Fit In
Startups don’t need to build rockets. There’s huge opportunity in software, analytics, and systems that help manage or extract value from space data.
Applications include agriculture monitoring, logistics tracking, climate science, and even space tourism infrastructure.
Making Your Space Startup VC-Ready
Investors want to see technical credibility, a clear market, and a roadmap. Space hardware is expensive, so partnerships and government grants help de-risk early stages.
Dual-use models (civil and defense) are also attractive to investors—governments are willing to pay for data, communication, and surveillance.
Actionable Advice
- Look for partnerships with space agencies or research universities.
- Break down a big vision into practical, fundable milestones.
- Consider “space-adjacent” solutions—like ground station software or edge processing tools.
13. Insurtech companies drew $14 billion in global VC funding in 2022
Why Insurance is Ready for Disruption
Insurance has been slow, complex, and paper-heavy for decades. That’s why in 2022, insurtech startups pulled in $14 billion in funding. These startups are rethinking how insurance is bought, sold, and managed.
From AI-powered underwriting to on-demand insurance apps, the field is evolving quickly.
What Works in Insurtech
Investors love platforms that simplify insurance for specific markets—like freelancers, gig workers, or small businesses. Tools that help insurers cut costs or improve customer service are also in demand.
APIs that allow embedding insurance into checkout flows (like travel or electronics coverage) are gaining traction too.
How to Succeed
Understanding compliance is key. Insurance is heavily regulated and varies by location. If you’re not a licensed insurer, partner with one.
Build trust through clear, jargon-free communication. People already distrust insurance providers—be the opposite.
Actionable Advice
- Find a distribution edge—like partnerships with HR platforms, e-commerce stores, or banks.
- Use data smartly to personalize offers and pricing.
- Focus on one product or audience before expanding.
14. Robotics startups received $17 billion in VC investment globally in 2022
Why Robots Are Getting Funded
From warehouse automation to personal assistants, robotics is moving out of sci-fi and into daily life. In 2022, robotics startups raised $17 billion in venture capital, showing investor confidence in machines that solve real-world problems.
Whether it’s handling repetitive tasks or operating in dangerous environments, robotics brings efficiency and safety.
Where the Money Flows
Startups building robots for logistics, agriculture, construction, and eldercare are getting the most attention. Why? These industries face labor shortages, and robots offer consistent performance without burnout.
AI-driven robots—those that adapt or learn—are especially attractive.
Breaking Into Robotics
You don’t have to build everything from scratch. Many robotics startups combine off-the-shelf hardware with smart software and unique applications.
Work closely with end-users—whether that’s factory managers or farmers—to design robots that solve clear problems.
Actionable Advice
- Build a working prototype and demonstrate it in action—investors want to see proof.
- Show cost savings or productivity gains clearly.
- Address maintenance and support early—it matters just as much as initial performance.
15. Gaming startups raised $13 billion in venture capital in 2021
Why Gaming is Big Business
Gaming isn’t just entertainment anymore—it’s culture, community, and commerce. In 2021, gaming startups raised $13 billion in VC funding, with investors backing studios, platforms, and tools.
Gamers span all ages, platforms (mobile, PC, console), and geographies. From hyper-casual games to competitive e-sports, the industry keeps growing.
Where Startups Are Thriving
Indie studios with breakout titles, tools that help game creators (like analytics or monetization platforms), and games that foster user-generated content are attracting investment.
The rise of gaming communities and creator economies also means games are social networks now. That opens doors for monetization beyond in-app purchases.
How to Stand Out in Gaming
Your game needs more than just good graphics. It needs an engaging loop, strong retention, and shareability. If players keep coming back and invite others, you win.
If you’re not making a game, build tools that help others. Engines, mod platforms, or creator monetization systems are in high demand.
Actionable Advice
- Focus on one great mechanic—don’t try to do too much too fast.
- Use alpha testers and early access to shape development and build hype.
- If monetizing through ads or purchases, balance them carefully—annoyed players churn fast.
16. Digital health startups raised $29 billion in the U.S. alone in 2021
Why Digital Health is Surging
Healthcare has shifted rapidly toward digital. In the U.S. alone, digital health startups raised $29 billion in 2021. That’s because telemedicine, wearable health tracking, and remote diagnostics aren’t just convenient—they’re necessary.
From pandemic response to chronic disease management, digital health tools are solving big, urgent problems. Patients expect on-demand care, and providers need smarter, faster ways to deliver it.
Where Startups Shine
Top-funded areas include virtual care platforms, AI diagnostics, mental health apps, and remote patient monitoring tools. Also gaining traction are platforms for managing health records and improving provider workflows.
Another growing niche? Digital therapeutics—apps or software programs that treat medical conditions through behavior change.
Getting Started in Digital Health
Focus on outcomes. It’s not enough to be digital—you must improve health. That means measuring real clinical results or time savings for practitioners.
Understand HIPAA and other regulations if you’re in the U.S. Data security and privacy aren’t optional here.
Also, plan your sales strategy. Selling to consumers, providers, or payers all requires different messaging and pricing.
Actionable Advice
- Build partnerships early—with clinics, hospitals, or even fitness brands.
- Collect usage and outcome data—it’s vital for both fundraising and trust.
- Keep the user experience friendly—complex health tools rarely get used.
17. Supply chain and logistics tech attracted $25 billion in VC globally in 2022
Why Logistics is a VC Magnet
The world runs on logistics. But the supply chain is still surprisingly fragile—as we saw during COVID-19. That’s why investors poured $25 billion into logistics tech in 2022.
Whether it’s tracking shipments in real time, predicting delays, or automating warehouses, logistics startups offer practical, high-impact solutions.
Where the Innovation Is
Startups using AI for demand forecasting, route optimization, or warehouse robotics are growing fast. Platforms that connect shippers and carriers more efficiently are also hot.
Supply chain visibility—knowing where your goods are and when they’ll arrive—is another key area.
Building a Strong Logistics Startup
Start by understanding pain points in a specific segment. For example, small e-commerce stores often struggle with international shipping. If you can solve that, there’s a ready market.
Go beyond tech—logistics is deeply operational. Having advisors or co-founders with supply chain experience is a big plus.
Actionable Advice
- Offer easy onboarding—many logistics teams aren’t tech-savvy.
- Focus on reliability and ROI—investors and customers want measurable results.
- If possible, build network effects—platforms that grow stronger as more users join tend to win.
18. Clean energy startups raised over $20 billion in VC in 2022
Why Clean Energy is Booming
The move away from fossil fuels is one of the biggest shifts of our time. In 2022, clean energy startups pulled in more than $20 billion in venture capital. These include companies focused on solar, wind, energy storage, and energy management.
As the world races toward net-zero emissions, there’s money—and mission—in clean energy.
What VCs Are Betting On
Startups working on grid-scale storage, hydrogen fuel systems, and smart energy platforms are high on investor lists. Even startups focused on residential solar or community energy sharing are gaining traction.
Software that helps manage or predict energy usage is also a fast-growing area.
What It Takes to Win
Hardware takes time and money. Many startups succeed by combining existing energy solutions with software to optimize use and performance.
Look for pilot opportunities with cities, campuses, or corporations aiming to go green.
Actionable Advice
- Understand government incentives—they can help fund early operations or attract customers.
- Make sure your tech is measurable—energy saved, emissions avoided, money reduced.
- Focus on economics as much as environment—investors want sustainable and profitable businesses.
19. Real estate tech (proptech) startups raised $24 billion globally in 2021
Why Real Estate is Being Disrupted
Real estate has long been slow to adopt tech. But with rising costs and shifting demand, the industry is changing—and in 2021, it attracted $24 billion in venture capital through proptech startups.
These startups are streamlining everything from property search to building management, and even fractional ownership.
Hot Trends in Proptech
Platforms for virtual tours, remote closings, and digital mortgages are popular. So are solutions for landlords and tenants—apps that handle rent payments, maintenance, or compliance.
There’s also growing interest in tools that help companies manage hybrid workspaces or track sustainability in buildings.
How to Succeed in Proptech
Make the experience smoother. Real estate is paperwork-heavy and full of friction. Any product that simplifies a painful step—like verifying income or signing leases remotely—can win fast.
If you’re working on commercial real estate, tie your product to cost savings or space optimization.
Actionable Advice
- Build with compliance in mind—real estate laws vary by region.
- Partner with brokers, landlords, or developers to pilot your solution.
- Consider vertical SaaS—tools built for specific property types like co-living or student housing.
20. Social media startups received over $10 billion in VC funding in 2021
Why Social Still Gets Funded
You might think social media is saturated—but new platforms raised over $10 billion in 2021. Why? Because user habits change fast, and new communities form around new formats.
Startups offering unique ways to connect—voice-first platforms, creator monetization tools, or interest-based micro-networks—are drawing attention.
Where the Gaps Are
Mainstream platforms are broad. There’s space for niche networks—like platforms for fitness coaches, pet owners, or remote workers—that build stronger engagement.
Also, tools that support creators—helping them earn, grow, or manage their audiences—are getting funded.
How to Enter Social Tech
Build something different. Don’t just clone Instagram. Offer a new way to connect, share, or build community. Think in terms of behavior shifts—not just content formats.
Growth is key. If you can show rapid user growth and retention, fundraising becomes much easier.
Actionable Advice
- Launch small—focus on one niche audience and build deep engagement before expanding.
- Build in monetization tools—creators need to earn, and that attracts them to your platform.
- Use waitlists, invites, or exclusivity early on to drive buzz and FOMO.
21. Legal tech startups raised $2.5 billion globally in 2022
Why Legal Tech Is Gaining Momentum
Law is complex, slow, and often expensive. Legal tech startups aim to fix that—and in 2022, they attracted $2.5 billion in VC funding. These startups are modernizing contracts, case management, document automation, and even legal research.
The growing demand for affordable and accessible legal services is pushing innovation. Businesses want faster compliance. Consumers want access to justice. Investors see the opportunity.
What Legal Tech Solutions Are Hot
Tools that automate repetitive legal tasks—like NDAs, employment agreements, or due diligence—are getting strong traction. Platforms that allow businesses to manage legal work without hiring full-time counsel are also popular.
Another growing segment is dispute resolution platforms that help settle conflicts online, saving time and court fees.
Building Trust in a Conservative Industry
Legal professionals are slow to adopt new tools, so success depends on usability and credibility. Focus on making things easier, not just different. Highlight how your product cuts costs or saves time without sacrificing legal accuracy.
Also, demonstrate that your solution complies with local legal regulations and data privacy laws.
Actionable Advice
- Get advisors or co-founders from the legal industry—they add trust and insights.
- Start with a narrow focus—like small businesses, immigration law, or family law.
- Ensure airtight data security. Sensitive legal information must be protected at all costs.
22. HR tech and work tech startups secured $5 billion in VC in 2022
Why the Workplace is Being Reinvented
Remote work, employee wellness, and talent shortages are changing how companies manage people. That’s why HR tech startups attracted $5 billion in VC funding in 2022.
Startups in this space are improving how companies recruit, onboard, retain, and develop talent. From AI recruiting tools to mental health platforms, HR tech is now mission-critical.
What Gets Funded in HR Tech
Startups focused on hiring automation, DEI (diversity, equity, inclusion), employee engagement, and remote team management are seeing significant funding.
Also gaining ground are platforms for training, career development, and performance tracking—especially when designed for hybrid teams.
How to Build for HR Teams
HR professionals need simplicity and impact. They’re busy and not always tech-savvy. So your platform should make life easier, not more complicated.
Retention is a hot button. If you can help companies reduce churn or improve employee satisfaction, you’ll get attention.
Actionable Advice
- Solve one key problem really well before expanding features.
- Offer integrations with HR systems like BambooHR, Gusto, or Workday.
- Track outcomes like hiring speed, retention, or engagement—and share these with investors.
23. Agtech startups attracted $11 billion in VC globally in 2021
Why Agriculture Needs Innovation
Feeding a growing population while protecting the planet is a big challenge. Agtech startups, which attracted $11 billion in funding in 2021, are helping solve it.
From precision farming to supply chain tracking to alternative fertilizers, startups are making agriculture smarter, more efficient, and more sustainable.
What’s Trending in Agtech
Startups using drones, sensors, and AI to optimize crop yields are top-of-mind. So are tools that help smallholder farmers get access to markets, credit, or insurance.
Vertical farming and indoor agriculture are also gaining attention, especially in urban areas where traditional farming isn’t viable.
Breaking into the Market
Farmers are practical. They need tech that works in the field—not just on paper. Build tools that are affordable, durable, and simple to use.
Also, distribution is key. Partner with local cooperatives, government bodies, or agri-retailers to reach farmers at scale.
Actionable Advice
- Focus on one crop type or geography first.
- Offer financing options or pay-per-use models—farmers often work on tight cash flows.
- Prove ROI—show how your product increases yield or cuts costs.
24. Mental health and wellness startups drew $7 billion in VC in 2022
Why Mental Health is a Growth Sector
Mental health used to be taboo. Not anymore. In 2022, mental health and wellness startups drew $7 billion in venture funding. The pandemic, work stress, and social isolation have all increased demand for support.
From therapy apps to meditation platforms to corporate wellness tools, this sector is booming.
Where Investors See Opportunity
Solutions offering easy access to therapists, personalized self-help, or mental health coaching are popular. Platforms focused on underserved groups—teens, men, remote workers—are also growing.
Employers are key customers too. More companies are offering mental health benefits, creating B2B opportunities for startups.
How to Launch a Mental Health Startup
Credibility matters. Partner with licensed professionals, show clinical backing, and highlight privacy protections.
Also, engagement is critical. Many users download mental health apps but stop using them after a week. Make it easy to build habits.
Actionable Advice
- Start with a narrow focus—like anxiety support for college students.
- Make onboarding simple and welcoming. Reduce friction to first engagement.
- Partner with schools, employers, or insurers to reach users at scale.
25. Quantum computing startups raised $2.2 billion in 2022
Why Quantum is Getting Real
Quantum computing is no longer just a research topic. In 2022, startups in this field raised $2.2 billion. As big tech and governments invest in quantum infrastructure, startups are building software, tools, and applications that could change everything.
Although still early, VCs are placing bets now—especially on startups that bridge the gap between theoretical power and real-world usage.
What Kind of Startups Are Winning
Companies building quantum-safe encryption, simulators for quantum chemistry, or development tools for quantum programming are drawing interest.
Platforms that help developers write quantum applications, or hybrid models that combine classical and quantum computing, are also on the rise.
Getting Started in Quantum
This is a deep-tech field. Most successful startups are led by PhDs or researchers, often spun out of universities.
But business people are needed too—to shape the go-to-market strategy, build partnerships, and raise funds.
Actionable Advice
- Collaborate with research labs or academic institutions for credibility.
- Focus on one commercial use-case—finance, pharma, or materials science.
- Educate investors and partners—quantum is complex, so clear communication matters.
26. IoT startups globally received $18 billion in VC funding in 2021
Why the Internet of Things is Scaling Fast
IoT—short for Internet of Things—is all about smart, connected devices. From smart thermostats to factory sensors, these tools collect and share data to automate and optimize operations. And in 2021, IoT startups pulled in $18 billion in VC funding globally.
IoT is touching every sector—homes, cities, agriculture, logistics, manufacturing. Startups that create these connected solutions are offering not just gadgets but systems that drive real efficiency.
What’s Driving the Growth
The rise of 5G, cloud platforms, and edge computing is making IoT systems faster and more reliable. Investors are especially excited about industrial IoT (IIoT), where smart sensors and automation help reduce downtime, cut costs, and improve safety.
Consumer-focused IoT, like home automation and wearable devices, is also growing—especially when the data improves user convenience or health outcomes.
How to Build a Smart IoT Startup
Don’t just create a cool gadget. Focus on the full experience—hardware, software, connectivity, and user value. You need a reason for people to use and keep using your product.
Also, think through security early. Every connected device can be an entry point for hackers, and investors want to see safeguards in place.
Actionable Advice
- Build for interoperability—your device should work with existing ecosystems like Alexa, Google Home, or enterprise platforms.
- Focus on reliability—one faulty reading can break trust.
- Highlight business impact—energy savings, productivity gains, safety improvements.
27. Martech startups (marketing technology) raised $10 billion in 2021
Why Marketing is Tech-Driven Now
Modern marketing is more about algorithms than gut feeling. Martech startups raised $10 billion in 2021 because companies of all sizes need tools to reach, convert, and retain customers more efficiently.
From automated email platforms to AI-powered analytics and personalization tools, the martech stack is getting deeper and smarter.
What Investors Look For
VCs want startups that solve a clear marketing pain point—like attribution, audience targeting, or customer segmentation. Platforms that integrate with CRMs, e-commerce platforms, or social media tools are especially appealing.
There’s also growing demand for no-code tools, allowing non-technical marketers to launch campaigns without needing engineers.
How to Win in Martech
Choose a specific audience—B2B marketers, small businesses, or creators—and tailor your platform tightly. General-purpose tools rarely stand out.
Also, emphasize ease of use. Marketers are often juggling multiple platforms, and the learning curve can make or break adoption.
Actionable Advice
- Show how you improve ROI—track and communicate key outcomes like lead generation or conversion rate uplift.
- Offer tiered pricing—allow small teams to start affordably and grow with you.
- Prioritize integrations—plug into the tools your customers already use.
28. Consumer tech startups raised $28 billion globally in 2022
Why Consumers Still Drive Tech Funding
Despite rising costs and market saturation, consumer tech startups drew $28 billion in 2022. People continue to crave convenience, connection, and entertainment—especially on mobile.
From smart gadgets to lifestyle apps, investors back consumer tech that creates loyal users and scalable growth.
What’s Trending in Consumer Tech
Startups focused on wellness, productivity, home automation, and niche communities are gaining ground. Platforms that mix social features with commerce or content—like social shopping or micro-influencer tools—are also on the rise.
Hardware isn’t dead either—smart rings, wearables, and immersive experience devices are drawing new waves of users.
Succeeding in Consumer Tech
You need a sticky product—something people use daily or weekly, not just once. That means focusing on utility, design, and habit-building.
Also, watch your margins. Consumer tech can be expensive to acquire users, so lifetime value must be high.
Actionable Advice
- Leverage early adopters—use beta programs or waitlists to build excitement and feedback.
- Focus on user experience—friction kills retention.
- Build virality into the product—features that encourage users to invite friends lower your customer acquisition costs.
29. Sports tech startups attracted $2 billion in VC globally in 2022
Why Sports Are a Tech Opportunity
Athletes, teams, and fans are all becoming more tech-savvy. In 2022, sports tech startups pulled in $2 billion in VC funding. Whether it’s performance tracking, fan engagement, or venue tech, innovation is now part of the game.
From amateur fitness to elite performance, tech is helping people train smarter, watch better, and connect more deeply with the sports they love.
Where Startups Thrive
Wearable devices for athletes, data analytics for coaches, and fan experience platforms are all hot. Sports betting tech and fantasy sports tools also continue to gain traction in regulated markets.
Streaming platforms focused on niche sports or local events are another rising segment.
Getting Started in Sports Tech
Choose your audience carefully—coaches have different needs than fans. Understand how your tech improves performance, engagement, or monetization.
Also, work with existing ecosystems—teams, leagues, or fitness brands. That can give you fast exposure and feedback.
Actionable Advice
- Build around real sports habits—trainers and fans don’t want to change routines.
- Collect and display performance data clearly—make it actionable.
- Use testimonials—success stories help drive adoption and investor interest.
30. Fashion tech startups raised $6 billion globally in 2022
Why Fashion Meets Innovation
Fashion isn’t just about clothes anymore—it’s about personalization, sustainability, and tech-enhanced experiences. In 2022, fashion tech startups raised $6 billion globally.
Startups are combining AI, AR, and data analytics to change how people discover, buy, and wear products. And investors are buying in.
What’s Attracting VC Interest
Virtual try-ons, on-demand manufacturing, personalized shopping, and sustainable fashion platforms are leading the charge.
Fashion resale and rental marketplaces are also booming, reflecting growing consumer interest in circular economies.
How to Succeed in Fashion Tech
A deep understanding of your audience is essential. Fashion is personal, emotional, and fast-changing. You need to track trends and translate them into great product experiences.
Also, aesthetics matter. Your platform or app has to look and feel great—it’s part of the brand.
Actionable Advice
- Use data to personalize recommendations—shoppers want relevance.
- Work with influencers early to build credibility and reach.
- Focus on sustainability—not just for ethics, but because it’s becoming a purchase driver.
Conclusion:
Venture capital is more than just funding—it’s a signal of where the world is heading. From AI and fintech to mental health, space tech, and fashion, the flow of VC dollars shows us the industries that are not only growing but transforming how we live, work, and connect.
