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The four biggest startup industries of 2016

Are you sure you're in the right industry for your startup?

Are you a start-up in need of investment? Discovering that it is proving hard to find enough capital for your business development? You could simply be in the wrong industry, according to venture capitalist Tomasz Tunguz.

His new report on the top performing start-up areas reveal that not every new business is getting the same attention as others, in terms of investment dollars – and to quite a large degree.

A diverse world of small businesses

This study named "The Hottest Startup Sectors in 2016" investigated a wide range of industries, from social media to education to security, and found that the top performers for 2016 were most likely to be those in big data, education, marketplaces and software as a service (SaaS).

Education has done particularly well, a Mr Tunguz describes how the industry has seen seed investors increase their contributions to this industry from 6 per cent to 10 per cent since 2010. However, software-as-a-service industries top the charts, cracking 15 per cent in seed fundraising markets, while series A investors are also increasing along a similar trajectory.

Breaking away from expectations

However, despite these predictions, there is still hope for those even on the other end of the scale. Advertising was considered to be on the decline, having seen both seed and series A investors drop their funding levels, but one startup featuring an advertising technology product managed to receive $15 million over the course of three funding rounds, reports StartupSmart.

Evidently, there is still some steam left in the engine for even those who are seeing fewer investment dollars coming their way. 

If you are considering starting your own business in Australia, consider speaking to the team at WMC Accounting and find out how we can help you manage your investment funding and accounting needs, so you can better focus on your business.

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