With the pandemic taking toll on almost all businesses, some people baked their way through the year Covid struck. Others tried working from home with others opted for alternatives. And, across the world, more than 10,000 new startups were inaugurated.
There was a 42% rise in global startup funding during 2020, against 2019 figures. That indicates a bold attitude towards reinventing the world post-pandemic.
But which industries and countries benefited most from this investor confidence?
BusinessFinancing.co.uk analysed Crunchbase data and visualised how start-up funding changed from 2019 to 2020 across 43 industries. According to this study, the industry that lost out second-most for startup growth in 2020 was Travel & Tourism, with a -58% decrease on 2019’s figures.
Some of the additional findings by the report include:
The biggest industries for startup growth in 2020 were Science & Engineering (+329.7%),
Biotech (+187%),
Manufacturing (+113%),
and Agriculture (+112%)
– mostly areas with a stake in the fight against Covid. The industries that lost most startup funding in 2020 were
Music (-67%),
Travel & Tourism (58.1%),
Media & Entertainment (-55%),
and Clothing & Apparel (-39%).
Morocco is the country with the biggest growth, raising 279989.3% more funding in 2020 – although this is against a 2019 figure of just $1,000.
10,468 startups received venture capital (VC) funding, which is only 83 more than 2019.The average funding round in 2020 raised $28m, a 57% increase on the 2019 average. The US has the biggest investment rise dollar-for-dollar, raising $35,594,999,900 ($35.6bn or 79.0%) more in 2020.
But investment growth was far from equal from country to country. In fact, only 65 of the 97 countries with available data saw year-on-year growth in startup investment. China saw a $971.2m drop in investment. And El Salvador, Zimbabwe, and Rwanda each saw a 99% reduction – leaving them with almost no new funding at all.
While Morocco has a dramatically higher percentage growth than any other country, it should be noted that this is an increase of just $2.8m in real terms, against $1,000 funding in 2019. Still, it is impressive growth, particularly considering the six-fold rise in the number of Moroccan companies receiving VC investment – from a single startup in 2019 to six in 2020.
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