The 18 Most-Funded Startup Industries in 2014

July 15, 2015

12:30 pm

In 2014, the health care industry garnered the highest amount of venture funding and the second-highest number of venture deals: $9.74 billion invested in 1,100 deals, reported Mattermark. And it’s not surprising, with so many opportunities to improve our medical system.

Filling out a handful of paper forms in the waiting room feels more and more outdated and frustrating. Health records stay in their silos (read: filing cabinets) and don’t move with us to new doctors and new locations. Visitors to Canada are fond of complaining about hours-long emergency room waits (as I can personally attest to). And most doctors still rely on self-reports of symptoms and activity rather than taking advantage of new health-tracking devices.

Disgruntled patients aren’t the only ones who are seeing opportunities. Venture capital investment in health care has been increasing, up 32% from 2013-2014 and now almost double its 2009 totals. The industry had the 3rd-highest number of exits in 2014, too: 93 exits averaging $841 million and a 36x ROI. Health has its own startup accelerators, including Dreamit Health, Rock Health, New York Digital Health Accelerator, and Blueprint Health.

Meanwhile, the ever-popular mobile industry still had the most deals in 2014 – but probably not for long. Mobile startups raised less than health care startups in 2014, and the amount invested in mobile actually dropped by 34% from 2013. Mobile was one of the few industries on the decline, with standouts like security, cloud, and clean tech up more than 70%. Check out the 18 most-funded startup industries from 2014, as reported in Mattermark’s Startup Traction Report:

1. Mobile (1,169 deals)

Amount invested: $7.14 billion

Change from 2013: Down 34%

2. Health care (1,099 deals)

Amount invested: $9.74 billion

Change from 2013: Up 32%

3. Ecommerce (991 deals)

Amount invested: $6.18 billion

Change from 2013: Up 39%

4. Enterprise software (657 deals)

Amount invested: $8.17 billion

Change from 2013: Up 57%

5. Marketing (534 deals)

Amount invested: $3.47 billion

Change from 2013: Up 39%

6. Social networking (468 deals)

Amount invested: $2.85 billion

Change from 2013: Up 53%

7. Analytics (448 deals)

Amount invested: $3.42 billion

Change from 2013: Up 31%

8. Hardware (396 deals)

Amount invested: $2.54 billion

Change from 2013: Up 32%

9. Advertising (353 deals)

Amount invested: $2.28 billion

Change from 2013: Down 56%

10. Media (330 deals)

Amount invested: $1.87 billion

Change from 2013: Up 23%

11. Finance (288 deals)

Amount invested: $2.22 billion

Change from 2013: Up 37%

12. Education (263 deals)

Amount invested: $1.32 billion

Change from 2013: Up 51%

13. Software development (262 deals)

Amount invested: $2.75 billion

Change from 2013: Up 59%

14. Security (256 deals)

Amount invested: $2.36 billion

Change from 2013: Up 81%

15. Cloud computing (219 deals)

Amount invested: $3.60 billion

Change from 2013: Up 74%

16. Clean tech (202 deals)

Amount invested: $2.02 billion

Change from 2013: Up 103%

17. Entertainment (191 deals)

Amount invested: $1.40 billion

Change from 2013: Up 50%

18. Internet of things (145 deals)

Amount invested: $630 million

Change from 2013: Up 38%

The Mattermark 2014 Startup Traction Report, released last December, includes a wealth of data on the fastest-growing startups, regions, and industries (get it for $99). They used data from public sources like Crunchbase, AngelList, NASDAQ, the SEC, and the White House Office of Management & Budget, as well as private relationships they have with investors and entrepreneurs. Everything was measured for the 2014 fiscal year, which covers October 2013-September 2014.

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Kira M. Newman is a Tech Cocktail writer interested in the harsh reality of entrepreneurship, work-life balance, and psychology. She is the founder of The Year of Happy and has been traveling around the world interviewing entrepreneurs in Asia, Europe, and North America since 2011. Follow her @kiramnewman or contact [email protected]

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