Are you considering starting your own business or investing in a promising startup? It’s a risky and challenging path, as 9 out of 10 startups don’t make it in the long run.
According to Hubspot, 20% of startups falter after just one year, 30% close within two years, and 50% shut their doors within five years. That’s why choosing an industry that’s booming, innovative, and adaptive to the latest trends and consumer needs is crucial today.
This article will explore the top 10 promising startup industries to watch out for in 2023. We’ll examine the latest research, insights, and forecasts to provide you with a comprehensive overview of the most prominent and profitable sectors.
From Fintech to Biotech, from AI to E-commerce, we’ll cover everything you need to know to stay ahead of the game. Whether you’re an entrepreneur, investor, or simply curious about the latest innovation, this article will give you a rare glimpse into the startup scene and the industries that are changing the game.
Top 10 startup industries making waves today
The world of startups is constantly evolving, with new industries emerging every year. In today’s fast-paced digital world, innovative ideas and groundbreaking technology have played an integral role in the growth of startup companies.
With that said, a handful of industries are making waves and catching the attention of investors and consumers alike. These industries have seen significant growth in recent years and are expected to continue to thrive in the years to come.
Biotech Startups
The Biotech industry is already valued at an astronomical $414 billion, and it is showing no signs of slowing down. Biotech is an industry where biology and engineering meet to tackle the world’s most complex problems, from world hunger to quick pandemic responses. Biotech is fascinating because it harnesses the power of technology to make significant strides in scientific research.
Some of the most exciting new biotech trends that have emerged in recent years include:
- Gene editing allows scientists to edit DNA in living organisms, making it possible to cure or prevent genetic diseases.
- Personalized medicine allows scientists to customize treatments for individual patients, considering their genetic makeup.
- Bioprinting involves using 3D printers to fabricate biological structures, tissues, and organs that can be used for transplantation.
According to recent sources, Novo Nordisk A/S (NVO) and BioNTech SE (BNTX) are two of the most successful startups in this sector. Novo Nordisk A/S is a Danish company specializing in treating diabetes, obesity, and other metabolic disorders.
BioNTech, on the other hand, specializes in developing and manufacturing active immunotherapies. The company made international headlines in 2020 when it partnered with Pfizer to develop a COVID-19 vaccine that was approved for emergency use by the FDA.
Overall, the biotech industry is a force to be reckoned with in the startup world, and its growth is a testimony to the power of innovation and the potential of technology.
Fintech Startups
Financial technology or Fintech startups have been making a tremendous impact in the startup world in recent years, and the trend is only expected to continue. With the rise of the digital age, customers constantly seek convenient and efficient ways to manage their finances, and fintech companies are providing the perfect solution. Fintech uses technology to make it easier to manage finances, whether for transactions, documentation, or trading within the financial sector.
Fintech is a broad category and encompasses a wide range of financial services, from online banking and mobile payments to crowdfunding platforms and investment management tools. With the ever-increasing demand for fintech services, the industry has grown substantially, with 21% of all unicorn companies linked to the financial sector. This percentage indicates that fintech startups have a long way to go and still plenty of room for growth in this market. By 2030, the fintech market is projected to reach almost $700 billion, demonstrating the industry’s potential for continuous growth.
Many fintech firms have emerged as leaders in the industry, providing valuable services to customers. Stripe, a leading fintech company, is an online payment processing service that allows companies to accept online payments, manage subscriptions, and bill customers.
Mint is another example of a fintech company providing an online personal finance management service. Similarly, Cash App provides a simple platform for P2P money transfers and Bitcoin buying.
So, the fintech industry has a vast potential for growth and innovation, and these companies are contributing to revolutionizing financial transactions and services as we know them.
Artificial Intelligence Startups
Artificial Intelligence (AI) has undoubtedly become one of the fastest-growing and in-demand industries in the startup ecosystem. With the world becoming increasingly digitized, AI can change how we interact with technology and transform how businesses function. The market for AI startups alone is expected to exceed $1.5 trillion by 2030, making it one of the most promising areas to invest in.
The potential for AI is enormous, and entrepreneurs are well aware of this. In fact, 60% of entrepreneurs agree that AI is the most promising innovation technology. New natural language processing and various AI solutions are being developed to address a variety of business challenges, from automating mundane tasks to identifying new opportunities for the organization. It may be among the most talked about new technologies in today’s startup trends.
One factor driving AI’s growth is its ability to mimic human intelligence. For instance, Open AI’s ChatGPT language model is one of the AI-powered solutions developed to replicate human-like conversations. ChatGPT has been rapidly adopted by various businesses to address the need for conversational AI in customer service, marketing, and content creation. This is just one example of how AI can be leveraged for various business initiatives.
Some AI industry startups are already making waves in the startup world, including Jasper, Lensa, and Midjourney. The potential for more AI startups to continue entering the space is enormous. Therefore, the AI startup industry will continue expanding and proliferating in the coming years.
E-commerce Startups
E-commerce startups have become one of the top industries in the startup world today and for a good reason. The value of eCommerce sales globally is around $3.5 trillion, with rapid growth expected in the future. With the increasing popularity and reliance on online shopping, eCommerce startups have been able to capitalize on this trend and provide convenient and innovative solutions for consumers.
One key aspect driving the success of eCommerce startups is the use of rapid manufacturing techniques, such as 3D printing, that allow for greater product personalization. ActivArmor is a prime example of this – the company makes fully custom 3D-printed casts and splints, providing patients with a more comfortable and efficient healing process. Founded in 2016, this company has already raised $1.5 million in funding and is poised for continued growth and innovation.
Another success story in the eCommerce space is BarkBox, which reportedly sends about 120,000 different box varieties each month. Focused on delivering high-quality and unique products to dog owners, BarkBox has tapped into the growing trend of pet ownership and the desire for pet owners to pamper their furry friends.
ECommerce startups continue to significantly impact the business world, with many successful companies emerging and driving innovation in the industry.
Metaverse Startups
One of the top startup industries that have recently experienced substantial growth and attention is Metaverse-focused companies. The Metaverse phenomenon is a virtual world where users can interact with each other through personalized avatars, engage in various activities, and conduct business transactions.
This innovative concept has attracted many investors and entrepreneurs, and the market sector is expected to reach a value of up to $800 billion by 2024.
Several Metaverse startups have emerged in recent years, and some of the most successful ones include:
- Epic Games: The company behind the popular video game Fortnite raised an impressive $2 billion in funding in 2022 to develop a more immersive Metaverse experience.
- GuildFi: Taking the Metaverse to a whole new level by combining various technologies to create a more enriched user experience. Its innovative Metaverse ID system uses blockchain technology to track achievements and improve the gaming experience. Users earn points and rewards as they level up, incentivizing them to keep playing.
- PolkaWar: A startup based in Singapore that combines DeFi and immersive gaming to create a new platform for NFTs. This startup aims to revolutionize the gaming world by providing players with an exciting DeFi experience through NFTs, adding a new layer of asset ownership to the gaming world.
Overall, the Metaverse is opening up new opportunities for startups to create innovative augmented reality and immersive products that could revolutionize the future of gaming and social interaction.
No Code or Low Code Startups
The startup world constantly evolves and innovates, with many industries disrupting traditional business methods. The no-code or low-code industry is one of the hottest industries significantly impacting today. These startups have emerged as game-changers, empowering ordinary people with no prior coding expertise to create custom web and mobile applications.
Low code technology is a revolutionary approach to web and app development using visual drag-and-drop interfaces that eliminate the need for complex programming languages and raw code. With these platforms, creators build complex solutions without requiring in-depth coding knowledge, making the technology accessible and user-friendly.
Over the past five years, there has been a staggering increase in low-code technology searches, with a jump of 428%. This explosive interest in no-code or low-code solutions gained significant momentum in the summer of 2018 and has continued ever since.
Companies specializing in these platforms, such as Zapier, now offer straightforward options for creating digital products. Also, Webflow, another no-code platform, has already raised an impressive $334.9 million in funding.
The rise of no-code and low-code startups has transformed web and mobile development, empowering more people worldwide to build their businesses and create new solutions with minimal experience or expertise. These platforms have significantly reduced barriers to entry, sparking a wave of creativity and new ideas that drive innovation across many industries.
Cybersecurity Startups
In the current digital age, where everything from banking to socializing happens online, cybersecurity is one of the most pressing concerns of businesses and individuals alike. With cyberattacks rising and cybercriminals becoming increasingly sophisticated, the need for robust security measures is more significant than ever. This is where the cybersecurity startup industry is making its impact felt.
Despite the economic challenges brought about by the pandemic, the cybersecurity startup industry has been proliferating, with investments reaching an all-time high of $6.24 billion on July 12th, 2019.
This trend is expected to continue well into 2023, with an increased focus on IT and remote work. As companies and individuals seek to safeguard their digital assets, cybersecurity startups are poised to play a critical role in shaping the future of online security.
According to recent studies, some of the most notable cybersecurity startups include Abnormal Security, Snyk, and Lacework. Abnormal Security offers a cloud-based email security platform that protects against targeted attacks by ensuring that their software operates within Office 365 and G Suite environments.
Snyk is a software company that provides developer-first analysis tools to identify and fix open-source vulnerabilities. In contrast, Lacework offers cloud security automation that helps businesses identify potential risks and respond to cybersecurity threats in real-time.
The importance of cybersecurity cannot be overstated, and startups in the industry are playing a crucial role in developing innovative solutions to combat cybercrime.
Health and Wellness Startups
Health and wellness startups are undoubtedly one of the leading industries in the startup world today. They are making a massive impact on the market in terms of significant growth and high-value investments. According to Statista, this industry’s global market value will reach a staggering $7 trillion by 2025, indicating substantial growth opportunities and the potential for successful innovations.
The current pandemic has caused several changes in our everyday lives, including how we work and interact in the workplace. One of the most significant movements was the “Big Quit,” a term for employees quitting their jobs due to the lack of work-life balance and deteriorating mental and physical health.
As a result, startups have prioritized employee health and wellness to improve their culture at work and the overall employee experience. This has led to an increase in the use of technology to track and measure everything from employee engagement and productivity to overall happiness and wellness.
However, the health and wellness industry is more comprehensive than basic healthcare policies and employee benefits. Startups also focus on developing innovative solutions to improve the healthcare system’s efficiency and effectiveness.
With technological advancements, startups use artificial intelligence, machine learning, and other digital solutions to develop products and services addressing crucial healthcare issues. For example, some startups use telemedicine to provide remote healthcare solutions, while others create digital health platforms that help patients monitor their health and wellness easily.
The future possibilities for health and wellness startups are vast, and it is exciting to see the potential for many new medical breakthroughs and technological advancements.
ESG & Environmentally Conscious Startups
Environmental, social, and governance (ESG) startups are the talk of the town in the business world today. The ESG trend has prompted the emergence of venture capital firms and hedge funds focusing solely on investments that align with ESG principles. ESG consciousness has even penetrated the startup world, with many startups integrating ESG into their business strategy early in their development process.
A prime example of a successful ESG startup is Emitwise. This platform is designed to reduce carbon emissions at all stages of production through an automated process. Since its inception, Emitwise has raised $6.6 million in three funding rounds, highlighting the growing interest in ESG.
It is no surprise that ESG-conscious startups are thriving. According to a survey conducted by the World Economic Forum, more than two-thirds (68%) of startups have integrated ESG into their business strategies before even having a viable product, complete C-suite, or office space.
This move towards ESG integration signals a change in how businesses operate and reflects a growing consciousness of the importance of sustainability and social responsibility.
Agtech Startups
Agtech or “Agritech” startups have put themselves on the map in a big way. The demand for sustainable and efficient farming practices has become more pressing as the world’s population grows. Agtech startups aim to bridge the gap between the necessity of farming and sustainable practices by providing innovations that support efficient agricultural practices and positively impact the environment.
This has led to incredible growth in the agricultural technology sector, with total investments for 2021 reaching a staggering $10.5 billion, and the market value of the global agtech industry projected to surpass $22.5 billion by 2025.
One of the main benefits of these startups is their ability to facilitate change in the agricultural industry. Innovative technologies such as IoT soil sensors, which measure aeration and respiration, are being developed to improve crop management and increase yields. Agtech startups are also focusing on creating more sustainable and regenerative agricultural practices, which is critical for preserving the environment while meeting the increasing demand for food.
An exciting and innovative agtech startup is The Crop Project, which is focused on regenerative agriculture practices. The company purchases kelp from farmers, which is then dried and milled to create food and fertilizer products that are environmentally friendly and promote sustainable food systems.
Advancements in agtech show great promise for making significant improvements in the agricultural industry. As the demand for food increases and the consequences of climate change become more apparent, it is clear that agriculturally focused startups will play a vital role in creating a sustainable and prosperous future.
Final Thoughts
Startups are the driving force behind innovation and progress, and they have been at the forefront of many emerging trends. ESG-conscious startups, Agtech startups, and other innovative businesses are leading the way in creating a more sustainable future. The success stories of these companies prove that there is immense potential for growth within startup industries.
With new technologies being developed every day to address global issues such as climate change, we expect to see even more promising opportunities arise in this space over the coming years. As entrepreneurs continue to develop creative solutions to some of our biggest challenges, now is an ideal time to get involved with one of these groundbreaking startup industries!
MAccelerator
Today, entrepreneurs and startups are constantly seeking ways to stay ahead of the competition and take their companies to the next level. MAccelerator currently offers a virtual accelerator program that provides a cutting-edge solution that can benefit companies across all sectors and industries.
MAccelerator’s approach is not a one-size-fits-all type of program. Instead, it is tailored to meet the unique needs of each business so that it can achieve its desired goals. Our comprehensive virtual accelerator program is designed to help startups develop a clear strategy, create traction, and launch a successful go-to-market plan.
Our team comprises experienced entrepreneurs, investors, and business experts passionate about helping startups succeed. We understand the challenges that startups face when trying to get off the ground, and our goal is to provide them with the support they need to succeed. Through our accelerator program, we provide startups with access to the resources, expertise, and funding they need to turn their ideas into successful businesses.
If you want to take your startup to the next level and achieve success, M Accelerator is your perfect partner. To learn more about our program, join our Founders Meeting to learn more!
