When it comes to venture capital funding, certain industries are bound to attract more attention than others. Since venture capital is much more likely to be referred to as “good capital,” it promotes a greater level of innovation and industry competition. Comparatively, some markets just aren’t as primed for the ongoing innovation and development that capital funding promotes. Given that some businesses are better-equipped to receive outside funding, you’re likely curious about which industries are making waves and which are less-successful candidates.
Naturally, technologically innovative businesses are more likely to attract outside funding, though this isn’t always the case. If a business has a robust pitch, has done adequate research, and is able to prove consumer interest, it’s possible to attract additional investors. For a look at some of the top industries that are likely to spark a funding bid, here’s what you need to know.
Innovative Customer Service
In many ways, customer service seems rote. A customer calls, an agent answers, and a problem is (likely) resolved. As technology continues to develop, it’s apparent that this isn’t necessarily the case. In fact, as COVID-19 continues to impact markets across the globe, the need for innovative customer experiences has only grown. With record numbers of customer service calls, some businesses are struggling to handle call volumes, route customers to the right agents, and respond to voicemails. Of course, though times are fairly complicated at present, these shortcomings can still impact a brand’s image in a major way. Since many businesses are relying on online-only experiences, it’s important to be able to adapt and enhance the customer journey accordingly.
Venture capital has proven, in particular, to be particularly interested in key tech advancements in the customer service sector. Some of these include interactive voice response (IVR), artificial intelligence, call routing, chatbots, and other forms of automation. Contact center software that can integrate with multiple channels, such as social media platforms and live chat channels, is also quite popular.
Interactive voice recognition technology, particularly conversational IVR, has proven to be one of the most fascinating developments of modern call center solutions and is likely to be the standard of any developing tech from here on out. By operating a virtual call center, a business is able to operate with a leaner staff, handle inbound calls and outbound calls with ease, and provide great customer service on a more consistent basis.
Few markets are as ripe for funding as the medical field. Hearing health is of particular interest to many investors. Millions of individuals in the United States suffer from some form of hearing loss, be it tinnitus, partial deafness, or some other hearing disorder. Naturally, finding remedies and cures is paramount for professionals in biotech niches. As advancements continue, the diagnosis and treatment processes are becoming more streamlined, which then allows for continued innovation. In the hearing health market, one such advancement is the online hearing assessment. When social distancing and limited interpersonal contact are of the utmost importance, this is one advancement that has the potential to not only benefit those afflicted with hearing loss but also save lives by keeping both the patient and audiologist safe.
Online hearing assessments, while not foolproof, allow patients to undergo testing from the comfort of their own homes. There are different types of hearing tests, each of which can address different hearing loss symptoms and conditions. Tinnitus, in particular, can be hard to address, and some online hearing tests can identify telltale signs. Of course, it’s critical for patients to get their results verified by a medical professional, but this makes for a more convenient, impactful first step.
Naturally, venture capital invests in all kinds of medical advancements, even those outside hearing loss. Cutting-edge research, new treatment plans, and experimental technologies are fertile grounds for funding opportunities, and it’s unsurprising that some investors watch the medical markets with keen interest to determine product and service viability.
Compared to the previous two examples, real estate might sound akin to selling pre-owned watches in terms of its investment viability. However, real estate is almost guaranteed to remain a competitive, influential market. In the simplest possible terms, there’s a lot of money to be made selling property and building a real estate empire. This doesn’t strictly apply to home sales, either. Commercial property sells for a premium in almost any market and is excellent for a realtor’s portfolio. On top of this, the above-listed industries are also in need of dedicated space for research, development, and product manufacturing. This gives the real estate industry a unique perspective in terms of how the markets do and don’t move.
If you’re interested in learning how to become a real-estate mogul, you’re certainly not alone. Plenty of individuals invest a great deal of time and money into starting their own businesses, each with varying degrees of success. To obtain venture capital funding, a real estate opportunity needs to be able to showcase a definitive proof of concept. This is often more complicated than it sounds. Many of the larger markets are pre-established, and breaking into a crowded niche can be complicated, even in the best of times. It’s also critical to account for market trends which can greatly impact property values, seemingly without notice. While it’s definitely a fickle industry, it’s impossible to say it’s not profitable.
Individuals like Samuel Ramey know full well the interest that venture capitalists have taken in the business of influencing. In fact, terms like “influencer economy” have been bandied about quite often as of late. There are even influencer firms and management teams that recruit top talent and use their social media know-how to reach potential target audiences. It’s marketing on a grand scale that still retains a sense of intimacy. After all, influencers are as popular as they are because they are able to forge a lasting connection with the members of their audiences. In a sense, an influencer operates as less of a person and more of a brand, so to speak.
As such, certain businesses geared to selecting and cultivating influencers are attracting outside funding. Though many investors have yet to fully tackle the creator economy, certain popular brands such as Cameo have successfully garnered external cash injections. Startups like Karat have also secured operating funds that allow for greater care when developing new products, platforms, and profit opportunities.
Especially now that much of the global economy seems to be in a holding pattern, the ability of an individual to effectively market and sell products is nearly impossible to understate. It will be interesting to see what the next few years could hold for the influencer economy and which burgeoning platforms turn the tides in favor of influencer industry funding. For now, it’s a hot ticket, and many investors are primed to break ground in the industry.
A Funding Blitz
While some venture capitalist endeavors may seem fairly predictable or rote, there are others that have the capacity to surprise. Some innovations, after all, aren’t as clear-cut as you might think. Whether it’s the potential of the influencer economy to set records in terms of funding and outreach or a seemingly traditional staple like real estate continuing to make waves, it’s often difficult to determine which industries do and don’t have staying power. For now, it’s easy enough to say that the aforementioned industries are likely to see a great deal of success moving forward.
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