Last Updated on December 8, 2017 by Tim
Starting a business entails many things like thinking of a product to sell, which people to sell it to, and other aspects like branding, marketing and financing. Since not all business startups have ample funds, there is a tendency of resorting to searching for funding rounds from investors.
But which type of business startups immediately appeal to investors? Below is a list of the most attractive businesses that are favored by investors.
Products extracted from new energy sources are cheaper and sound revolutionary to a number of investment companies. Some examples of these byproducts that many would like to invest in are: Wind, solar and ethanol biofuels.
Other companies also look towards betting on nuclear energy, renewable, so as with energy storage and transmission. These are products that can help shape up communities, nations and generate more income.
Foood and Water
Food and water are among the primary needs of man. Investing in desalination of water and production of fruits, vegetables and generation of food sources are easily fundable by profit or nonprofit organizations. Food and water are essentials, the range of the market is huge and therefore, fast return on investment is expected. Where there is huge demand, profit cannot be far behind.
Artificial intelligence may be overhyped but it is just as revolutionary and innovative as energy, science and robotics investments. Where there is curiosity involved, it looks lucrative and challenging to investors—but not many have ventured into funding this business yet. These types of investments include drug discovery, car innovation like self-driving cars, fraud detection tools and many others.
Businesses that dwell on robotics magnetize big-time investors. Robots used to augment manpower or robotic software that aid in military operations are among the popular choices of today’s heavy investors. This innovation may not be easily manufactured but the fact that funding a company that deals with this kind of investment means much more to investors than the money they invested into the project.
It is a way of letting the world realize that aside from loaning money, they are in a way, helping develop advancement and that makes the investing companies more popular than ever.
Developing drugs to study an epidemic’s prevention does not come as a surprise to many. There is a great number of companies and organizations that invest in research and development of preventative medicines even though there is knowledge that each research project may take time to get done with. Another thing is that this investment is expensive and requires several rounds of funding.
Nevertheless, there is not a lack of possible investors that are curious as to how diseases can be prevented just as they want to know if there is a possible cure for the Zika virus or immediate solution for cancer.
A startup that aims to address possibilities of genes being tweaked pulls investors into funding rounds. Biotech projects rank as among the top investments that universities, non-profit organizations and multi-billion dollar establishments. Looking into projects that can done faster and cheaper is a plus.
Medical insurance is far expensive than what others may have thought. Nonetheless, if there is a preventative healthcare model, investors will not deny funding. This highly sustainable investment is highly preferred by investing companies as they know that there is a large majority of consumers that will support and patronize the venture. In short—ROI is fast. If the investee is good at governing the company, there is stability and assurance of a good profit. Another good investment and easily funded is the manufacture or innovation of medical supplies and apparatuses.
We live in an era where many have become more knowledgeable in hacking computer systems. This act hurts companies, hospitals and other organization that stores valuable information. It is also one f the reasons why the thought of building a safer Internet infrastructure is among the top investments which can receive fast and easy funding. A safer and better web environment does not stand alone as an attractive project. The development of bitcoin likewise generated more interest from investors.
Transportation & Housing
Housing and transportation projects would never run out of investors and funding for these may go as far as double-digit rounds. Investors who are willing to invest in these categories know that these are just among the basic needs of man. Better transportation means better businesses for urban or rural areas. On the other hand, low-cost housing creates a better society and helps prevent vagrancy.
One Million Jobs
Some theorized that in the next couple of decades, people will run out of jobs due to technological advancement. This may not be true because it takes several people to build a single robot which, in turn, can perform more accurate tasks at a faster speed. A good number of investors would still be interested in financing projects that involve a whole lot of manpower like manufacturing and construction companies. Creating more jobs translates to creating more talented work environments.
A new approach to educating students or preschool children may gain immediate funding as long as the model presented is convincing enough and beneficial to many. It may not be a breakthrough technology but fact remains that a newer educational approach leads to advancement of the human brain and race as a whole. Development of educational tools and solutions ranks on the top tier of fundable investments.
Programming is never a dull topic and so as the possibility of advancement in this field. As is it an ongoing technology, investors keep coming to the aid of companies that seek to promote software technology advancement. Investors believe that through constant development, things will be much better in terms of communication, security and further knowledge of computers.
Even private companies fund government projects. May it be on education, computer science, or community projects, funds just don’t cease to arrive. The government is one of the largest clients of investors as it does not run out of projects—only funds. There are companies who wish to make things better in their own countries that may eventually feed economies.
Large-scale scientific research can only be funded by large companies, universities and endowment funds. Since there are no independent research centers or laboratories, investors come pouring in when it comes to R&D. Funding initiatives can come either from companies or the newly-discovered crowd funding schemes.
For investors, developing countries are now labeled as emerging markets. There is a huge investor funds meant for Africa, South America, Asia and other countries that need some help on the financial side and the private sector is very much active on this. Examples of easily-funded activities are imports, optimized international delivery, logistics and agriculture.
Startups finding new ways to invest money for the not-so-high net worth individuals are worth funding. These are people who own fresh ideas know how to make their goals succeed. They are most likely smart investing savings, growing capital and know the importance of knowing risks and challenges that come in every business endeavor.
Communication projects like Skype, Facebook and Whatsapp are among the breakthroughs in communication engineering. These messaging platforms enables chats, talking and doing both using a video. Investing on this type of business is highly fundable as the main purpose is to connect with people. Connecting with more individuals promotes prosperity in different ways.
Investors also fund enterprise software which is used by large companies and totally required within the workplace. But somehow, software gets outdated which causes lags in office practices and delivery of leveraged new data. With the right funding, offices will experience smoother operations that is cost-effective and generate more results-driven workers.
Problems on ethnicity, gender and race makes people perform less than those in countries who enjoy financial stability and social success. Investors may fund based on problems that beset diversity in the effort of producing an almost equal capacity between nations. In such case, cultures and peoples from over the world will have the chance of experiencing what others have enjoyed since birth like good education and medical facilities to name a few.
Talents are no longer sought by agents nowadays. Agents command a price and so as press releases which may have intimidated other budding artists in breaking through the mainstream. Some artists are now pointing their heads toward YouTube which is a free venue to show their talents and skills as they can interact with their fans and can grow a following in this type of venue. This free platform have helped budding talents to get more exposure and this helped several of them to become well-liked and famous.
Funding comes easy or difficult for startups. But if careful planning is done, any type of business can get funded or invested in by huge companies. The only thing that startups have to keep in mind is to solve the question of funding before going to the next step of the business model. This allows for a more relaxed handling of the business and develop more confidence while in the process.