Last week we asked our members on COREangel's LinkedIn page: Which sector has been growing faster than others thanks to angel investors?
But, before we get into which sector the capital goes into in the pre-seed and seed stage of a start-up, let's take a look at a research report conducted by CB INSIGHTS.
CB INSIGHTS' research report about where angels and VCs among others invest in the early stages stated that even though the first quarter of 2022 showed a significant drop in funding compared to the growth Artificial intelligence (AI) had in 2021.
The Q1'22 is still one of the best quarters the sector had, presenting the biggest deals in merging and acquisition, 14 new Unicorn start-ups, and more than $15B invested around the globe.
Mental health Tech saw a significant drop in funds in the first quarter of 2022 compared to the fourth quarter of 2021 by 60%.
Global digital health funding went down by 36% from the fourth quarter of 2021 to the first quarter of 2022, decreasing another 32% in the second quarter of 2022. This decrease in funding did not affect Health IT.
In Europe, the story was different, seeing a 6% growth in digital health funding from the first quarter of 2022 to the second quarter of 2022.
But, this is the case for early-stage investment, and we know Angel investors are a different breed.
So, let's go back to COREangels' poll: we asked inside the COREangels' community which is the sector of their choice when looking for innovative start-ups to invest in.
Our survey showed that 71% think the fastest growing sector by Angel Investors in the pre-seed and seed stage is AI and Big Data, 18% voted for health Tech, and EduTech and FemTech got 6% of the votes each.
This comes as no surprise since at COREangels we have new groups forming specially focused on AI and big data start-ups in Switzerland and Europe aiming to grow globally , this is the case of COREangels Zürich.
We also have COREangels EduTech, a group of angel investors from Brazil, investing in educational technologies start-ups from Europe growing and expanding across Latin America and COREangels Mental Health & Wellbeing focus on improving quality of life and mental health.
At COREangels, we believe in equal opportunities, and we want to see more female founders and investors coming our way. We feel now is the right time to create a COREangels FemTech fund based in Europe consisting of early-stage investors devoted to financing start-ups led by female founders and focused on female health and wellbeing.
FemTech's goal is to create products and work on technologies that will improve women's lives and health. The sector is growing, and we are starting to see more organizations and companies that support both female entrepreneurs and female angels, aiming to foster and create an ecosystem in which female founders have equal opportunities as male entrepreneurs.
SISTA is a French organization that supports female entrepreneurs and Angel investors. The organization also has a FemTech network that focuses on Female Health.
This is not the only case in Europe, for example, Mint ventures is a Scottish-based group led by and for female founders and Female Founders is an Austrian-based NGO focused on creating equal opportunities for women entrepreneurs in tech and innovation across Europe.
So, with all this said and done, Which sectors do you think are the chosen ones for Angel Investors?
References:
State of Digital Health Q2’22 Report
State of Digital Health Spotlight: Mental health tech funding slows in Q1’22
SISTA https://www.wearesista.com/
Mint Ventures https://www.mintventures.co.uk/
Female Founders https://www.female-founders.org/
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