Frederick Jace
Ask any successful investor the secret behind their success and they would tell it was because they chose a profitable industry. Of course, other factors count as well but the right industry or niche market determines your profitability big time.
I was reading a blog about how to pay Spectrum TV bill online when I saw an ad about an investment company. This intrigued me to learn about the top industries to invest and here I am sharing them with you!
If you are a first-time investor or entrepreneur looking to realize your dream, these are the most lucrative and investor-friendly industries that deserve your attention:
1: Fintech
It’s short for financial technology and it’s disrupting the traditional financial markets worldwide. This dynamic startup ecosystem has been drawing the attention of investors probably because it’s very lucrative.
The KPMG report says that in 2018, the buyouts, acquisitions, and mergers related to fintech brought the fintech funding value to $112 billion. There are a handful of geo-diversity investment resources which are the driving force behind the maturity of this industry.
Peer-to-peer lending and crowdfunding are the leading drivers of growth in this sector. About 20 states in America now have comprehensive laws governing different niches in the lending industry. These laws have opened a world of opportunities for startups and protect consumers from predatory lending.
2: Cannabis
Next up is cannabis. There have been many negative stereotypes associated with the use of cannabis in the past. Now that more regulations are in place, the cannabis industry has proven to be lucrative for investment.
It is expected that by 2022, consumer spending on cannabis will hit $23 billion. This industry is a good opportunity for new or growth-oriented entrepreneurs who want to jump into a future-proof industry.
The good news is it has highly diverse niche markets. The industry is growing as well so a ton of business opportunities exist. More and more countries are legalizing cannabis. In the future, expect other opportunities to emerge in this area.
3: EdTech
Education tech has been through some seismic shifts amidst the coronavirus pandemic. It is disrupting self-developing and corporate learning at the speed of light. Startups in EdTech receive five million dollars in funding on average.
You as an aspiring entrepreneur can take up any profitable segment in the EdTech industry starting from career advancement, campus management, corporate learning, etc. The most lucrative one is self-learning. Over $255 million have been pulled at the start of 2020 which means it’s quite an appealing industry.
4: Artificial Intelligence
Artificial intelligence is another lucrative investment pick for 2021. This technology is going to drive growth in the cloud and 5G. Since this technology is innovating continuously, there is no way the growth will pause. If you are seeking tech micro-trends, AI is for you.
The tech war between China and the United States is going to lend support to all types of companies supporting big data and AI.
5: Green & Renewable Energy
Renewable energy used to be exclusive to non-profits, multinational organizations, and the govt. Now that the consumer demand has increased, cost-effectiveness has improved and tech innovations have risen, the renewable energy industry is now a great opportunity to start a business.
In 2019, the global investments in this industry hit $288.9 billion and solar investments took the largest share. Other leading sections include biomass, waste to energy, coal, and gas, and wind power.
Just look around and you will see the opportunities to invest in clean energy exist almost everywhere. Let’s say you plan to invest in wind power. There are other niches within this market too such as bio-fuel production, photovoltaic systems, power storage systems, and other future proof niches.
6: Digital Marketing
We are living in a world where a video ad with a spending of $4,500 can turn a startup into a billion-dollar company. Hence, digital marketing remains a promising investment in 2021 and even many years to come.
For entrepreneurs who are interested in digital marketing, there are a ton of opportunities. Most marketing agencies generally offer all-inclusive marketing services, it pays if you choose to invest within a specialized niche. PPC ads and Search Engine Optimization are the most lucrative areas. Then there is social media management, digital ad placement, and influencer marketing. With time, other niches in digital marketing will emerge too that startups might be interested in.
Conclusion
If you are planning to invest in any of these industries, I would recommend doing deep research on your target industry. Like Warren Buffet says, “Never invest in a business you cannot understand.” Don’t invest in an industry you can’t comprehend.
