Last Updated on: 22nd November 2023, 12:44 pm
The term ‘start-up’ can be polarising in the investment world. While some of the most renowned companies in the world, like technology giants Apple and Microsoft, were start-ups once before they commandeered the market.
A whopping 60% of UK-based start-ups fail within their first three years, making it challenging for investors to determine whether a start-up will be lucrative. Yet, there are several ways that you can draw accurate assumptions.
Founders with excellent soft skills, a culture of accountability, and a well-rounded, adaptable team that is good at product development – there are various ways to identify which start-ups will be the best. Providing that you’re good at spotting them, you can make a generous return in a couple of months; however, with all the start-up companies that come and go, how do you know which ones to watch and why?
From learning/FinTech start-up companies to early-stage technology companies, there are so many industries that are home to innovative start-ups that it can take much work to keep up with them all. Therefore, we’ve created a list of some of the best and how to get involved in them below.
Technology
In our digital world, just about every aspect of our personal and professional lives is populated with technology that keeps us connected and helps us go about our daily lives easier. As you can imagine, the technology industry is one of the most anticipated industries for emerging innovations, which is why it is an ideal investment for tech-savvy investors.
The technology industry is one of the most significant industries, with many single subsectors like Fintech, Edtech, and Healthcare tech, in which investors choose to invest their hard-earned money. If you’d like assistance connecting with technology companies, consider enlisting the services of alternative investment managers like Oxford Capital, who are passionate about investing in early-stage technology companies. Visit their website to understand more about their services, read investment-related news/articles and more.
Food Delivery Services
Another emergence over the past couple of years is food delivery services, which have shown tremendous growth since they exploded into popularity in 2020. With more and more homeowners wanting the convenience that food delivery services offer, meal kit companies like Hello Fresh Gousto, Allplants, and many others have witnessed a considerable popularity spike.
The net worth of the food ordering and delivery industry is around £3.3bn, with this figure only expected to grow, making it an excellent sector to invest money into. Plus, meal kit delivery companies like the above aren’t the only way to invest; you could consider investing in restaurant delivery, grocery delivery, and other food delivery start-ups using the stock market.
Entertainment And Leisure
As a result of the nightmarish few years, the British public was forced to find other means of entertainment and leisure which didn’t involve going outside. Due to this, many people turned to reading, working out, virtual group cooking sessions, streaming platforms, and online games.
With the latter two being some of the most popular, the gaming market saw a whopping increase to £7.5bn, which is where it stands as of 2023. Household-known brands like Microsoft, Nintendo Co. Ltd., Netflix Inc. and many more leaders in the leisure and entertainment industry have established themselves at the top.
However, we can only expect the industry to grow as more and more innovative start-ups join, which is why this industry should be one for investors to keep their eye on. One of the best ways to get involved is by creating a watchlist of ETFs and stocks in the entertainment and leisure sectors, which you can mark as a favourite so that you can watch how it fares before you decide to invest.
E-commerce
Another industry home to innovative start-ups is e-commerce, with the United Kingdom being the fourth-largest e-commerce market worldwide. One of the reasons that the e-commerce market has experienced such growth is that online shopping has become more desirable than in-person shopping.
Some popular e-commerce start-ups are Klarna, Depop, Bloom & Wild, Farfetch, and many more. Ranging from fresh flower delivery services to platforms for reselling preloved clothing items, start-ups in this industry can take on many forms, making it such a lucrative investment opportunity for investors.
One of the most straightforward ways of investing in e-commerce start-ups is by buying shares. Using an online brokerage, you can browse, track, and purchase shares of publicly traded companies. One of the most significant advantages is that most online brokers don’t require a minimum deposit, so you can trade as you develop your skills and become more confident.
In Summary
As you can see, there are plenty of industries that are likely brimming with innovative start-ups. Each one holds the potential to blossom into a successful business, that can develop and expand over the years. Keep some of the industries in mind if you are considering in getting involved in exciting projects.
