Five Hottest Sectors for Startups

With technology fi nding new ways to sneak into our lives every single day, it is little wonder that the sector has thrived and has been dishing out healthy returns for investors. This, in turn, has created a robust network of mentors, who are supporting more technology companies, creating a virtuous cycle. Zinnov, a management consultancy that closely tracks the sector, estimates that between now and 2015, up to 600 new technology ventures will be created every year in India. The gold rush is clearly on. “Across internet services, ecommerce and travel portals at least two to three companies will be billion-dollar bets for certain,” says Vani Kola, co-founder of Kalaari Capital, an early stage investment fi rm. However, picking the right bet from an overfl owing technology basket is key for a new venture. Despite the advantages of money and a growing market, barely a fi fth of the technology ventures set up in the last seven years have raised a second round of funding. Industry experts reckon picking the wrong business idea can drive the failure rate even higher. “You cannot manufacture cars when there are no roads,” says Kola. ET spoke to a cross section of investors and industry experts to pick the Top Five Sectors to launch a technology venture today.

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