I Top VC-Funded Industries

Startups Top VC-Funded Industries

These five industries have attracted the most funding from VCs worldwide in 2022, in terms of deals count over the past five years, according to Statista. Here we take a look at how they’re growing.

AI and big data

The global AI market was valued at nearly $59.7 billion in 2021, according to Zion Market Research, and is estimated to reach $422.4 billion by 2028. While North America leads in terms of overall revenue from AI, the market in Asia Pacific is expected to develop at the fastest CAGR, with the use of AI in prominent end-user categories like healthcare, manufacturing, and automotive in China, Japan, South Korea, and Australia leading to this expansion.

According to the Business Research Company, the value of the global big data and analytics services industry grew from $107.9 billion in 2021 to $121.7 billion in 2022. This is forecast to hit $196.95 billion by 2026.

Life sciences and healthcare

Research from Savills reveals that globally the amount of capital raised by life science companies was $803 billion in 2021—43% higher than in 2020. This includes mergers and acquisitions, IPOs, VC, and other types of private equity. In 2022, this percentage is expected to be lower. However, there is considerable growth for life science companies as well as higher demand for their services. The U.S. will still dominate the funding data accounting for a 67% share of the total capital raised by companies in 2021.

Biotechnology has attracted the most life sciences funding with 77% of VC funding in H1 2022, and biotech IPOs have also been popular, with funding percentages at almost 70% between 2018 and 2021, according to CBRE. In January 2022, Baker McKenzie reported that 53% of biotech companies based in the U.S., Asia Pacific, and Europe were seeking growth via VC funding. In one to two years, 52% will pursue venture capital lending, and 51% will seek private equity funding.

Top VC-Funded Industries In Terms Of Deal Counts Over Last Five years

Other Sectors 37%

$

AI and big data 24%

Life sciences and healthcare 10%

Blockchain 9%

Advanced manufacturing and robotics 10%

Fintech 10%

Source: Statista

Fintech

According to a KPMG report, investments in the Fintech sector fell globally from $111.2 billion across 3,372 deals in the second half of 2021 to $107.8 billion across 2,980 deals in the first half of 2022. This aligns with the overall decline in investment experienced in the wider technology sector.

The Asia Pacific region attracted a new annual high of Fintech investment but across a fewer number of deals. This new record was driven almost entirely by three large M&A transactions: the $27.9 billion acquisition of Australia-based Afterpay by Block, the $2.1 billion buyout of Japan-based Yayoi by KKR, and the $1.5 billion merger of Australiabased Fintechs Superhero and Swyftx. Advanced manufacturing and robotics

Advanced Manufacturing Series A funding has grown by 70% over five years, according to a report by Startup Genome, driven by global supply chain issues and a focus on improving efficiency and productivity through automation, monitoring, and failure prediction.

In robotics, the startups that raised a significant amount of investments included medical surgical system startups, including CMR Surgical which raised $600 million in a Series D round at a valuation of $3 billion in June 2021, and Memic Innovative Surgery, which secured $96 million in a Series D round in April 2021.

Blockchain

Over the last five years, early-stage funding into blockchain saw a 91% growth and 12% since last year, according to Startup Genome. Blockchain continues to be primarily used in the banking and financial services sector, where it is transforming traditional models. Increasingly, blockchainbased solutions are also being used to build more sturdy supply chains, ensure secure health data exchanges, and enhance the hospitality industry, among many other applications.

20 Diving Into Deep Tech

Founder and CEO of Vurse, Shadman Sakib, is on the cusp of launching the interactive short-video platform in Dubai. He reveals more about the platform and what he hopes it will achieve.

Shadman Sakib, Founder and CEO of Vurse

What can you tell us about Vurse, and what kind of impact do you expect it to have once launched? I’ve always had the desire to leverage deep tech to solve major challenges that humanity faces today. Social media has taken the world by storm. There are eight billion people living on earth today and out of those, close to five billion people are using social media.

Even though social media has changed the lives of billions, there are some major issues with the way it’s structured today. Monetization for content creators, ownership of the content and social media itself, and the lack of interaction between content creators and fans, are major issues to name just a few. With Vurse, we’re looking to solve exactly that.

Vurse proposes to offer a unique and hyper-interactive platform incorporating the best of deeptech available today. This includes AI and machine learning systems that give users exactly the kind of content they want to consume; Web 3.0 technologies such as blockchain and metaverse to tackle monetization, ownership, and enhanced interaction; and high-level data science to study and predict consumer behavior.

Scan this QR code to open the website

It’s the seamless combination of aesthetics and technology that’s exciting and will be a game changer in the way we access and experience social media.

What is your assessment of the deep tech industry in the Middle East, and how do you see it evolving? When we talk about technology, geography doesn’t matter. It doesn’t matter where you are based. The entire world needs to sit up and pay attention if you want to create products that make a lasting impact. We refer to the global landscape and not just the Middle East. The metaverse, blockchain, and Web 3.0 simply appear to me to be the next evolutionary step in the age of connectivity for individuals who are eager for new experiences. Having said that, I am definitely of the opinion that a lot of credit and gratitude must be given to the leaders of the Middle East. They have laid the perfect foundation for early adoption of deep tech, and Dubai has been at the forefront. The Dubai government has opened everyone’s eyes to what we should be looking forward to. The metaverse promises to bring our digital and physical lives closer together in terms of health, socializing, efficiency, shopping, and entertainment, and the U.A.E. has embraced this better than any other country that I can think of.

Why did you decide to base yourself in Dubai? Dubai has always been ahead of the game, the announcement by H.H. Sheikh Hamdan about creating 42,000 jobs in the metaverse sector has been hugely welcomed by the tech world globally. Even though I moved here prior to this announcement, I am happy to be launching Vurse in a city and country that is making huge strides in the world of tech by making it a national priority.

This government initiative will see a major boost in talent and the economy in the coming years. It is believed that the metaverse will infiltrate every sector and will account for more than $1 trillion in revenues, according to recent studies by JP Morgan.

Dubai will also be the place to attract the best tech minds from around the world with this announcement. A multitude of new businesses will be created in the near future and they will thrive within the metaverse as advertisers and brands understand the importance of investments within this new digital world.

Also, the risk factors in the GCC are much lower due to the fact that there is political stability and safety. Keeping up with the new policies that support technological advancements will be a challenge regionally. The U.A.E.’s lead in the metaverse space is one prime example of how a country is able to be at the forefront of it and how to create the right atmosphere for experts from all over the world to further add value.

From a global perspective, it will help the policymakers understand the need to speed up the process and have thought leaders as a crucial part of the team.

At 27 years old, you are launching this latest venture in the social media world as a young entrepreneur. How did you get to where you are today? The journey has not been an easy one. Through a lot of trials and tribulations, I’ve been blessed with some fantastic people around me—whether that’s my family, my cofounder, my friends, or my team members. My passion for technology and my business acumen have led me to this juncture in my entrepreneurial journey. From a very young age, I’ve had the inclination towards solving major problems in the tech space, and I channelled this desire towards building Vurse.

Beyond Vurse, what is next for you? What is your ultimate goal? I truly believe that we need to bring about a change in the entrepreneurial mindset of today. Most founders today are chasing higher valuations and exits. Of course, there’s nothing wrong with that, but my belief is that when you build a company, you build it with the mindset of creating value that lasts centuries. And to be able to successfully do that, a founder must encapsulate the company through their entire lifetime.

I envision Vurse to be a global leader in the technology landscape for generations to come. Therefore, I cannot think of a life beyond Vurse. Vurse is it for me. All my experiences in life so far have led me to Vurse and it is as if I’ve finally found my true calling. It is with Vurse that I want to leave my mark on the world.