Sectors Venture Capitalists are Still Investing In

Written By Steps To Faculty Published September 30th, 2010

Starting your own business means seeking funding from venture capitalists sometimes. Investors put money in certain ventures with a hope that they will benefit from a worthwhile return on their investment. Big pay days are remaining elusive for now, but investors in the beginning stages are still putting their money out there. Venture capitalists take a company public or sell them to other companies and reap the financial rewards. Despite the anemic demand for IPOs, there are six sectors that ventures capitalists are still investing in.

Step 1. Think of healthcare

In the fourth quarter, $1.8 billion dollars and 167 deals were made. This is somewhat surprising to some who think the looming legislation should have scared venture capitalists away from putting their money into medicine.

Step 2. Try The Internet

In the fourth quarter, $1.5 billion dollars and 227 deals were made. There is no stopping the internet and its ability to snare venture capitalists’ money.

Step 3. Consider Software (non-internet)

In the fourth quarter, $490 million dollars and 66 deals were made. The software sector delivers what every venture capitalist craves, which is a vast scale and therefore huge possibility for return on investment. As soon as the cost to sell a copy of a program falls, the profits on it soar.

Step 4. Investigate Mobile & Telecommunications

In the fourth quarter, $388 million dollars and 59 deals were made. The Apple iPhone is the number one source for keeping the mobile and telecommunications sectors alive and well.

Step 5. Get into Electronics

In the fourth quarter, $284 million dollars and 36 deals were made. Whether the economy is up or down, venture capitalists are always looking for the next hot electronics manufacturer.

The energy sector is also hot. In the fourth quarter, $260 million dollars and 30 deals were made. While the buzz that once surrounded the energy grid has died down alongside the economic flop, venture capitalists still see hope. With the Chinese pushing hard for solar generation, it remains a hot topic and keeps energy and utilities on list of the top six sectors that venture capitalists are still investing in. As it is clear to see, this list of sectors surrounds categories that are hot on the market today. Venture capitalists will only put their money into things that seem like they will continue to succeed, and technology is a huge, broad sector that all of these could easily fit into. Other sectors that are worth mentioning include Computer Hardware & Services, Industrial, Business Products & Services, and Automotive & Transportation. Please visit stepsto.com for more great business advice.


Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

My name is Roger Due and I am from Albuquerque, New Mexico and I am the owner of the Monsano software company. This has been an absolutely fantastic conference. This is the best I have ever been to.