The Worst Industries For Startup Investment In 2015

 

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2015 has proven to be a good year for startups, with VC investments totaling $11.3 billion during the first quarter. Additionally, hedge funds and mutual funds, which usually invest in publicly traded companies, have also chosen to invest billions of dollars in the startup industry, with Uber, Airbnb and Dropbox taking the cake. The fact that these traditional (or untraditional depending on which way you look at it) players have stepped into the startup investment space clearly signals that there’s profit to be made…if you invest in the right industry. While e-commerce, wearable tech, business app, and big data industries continue to be the usual suspects for investment, there are certain industries that just won’t cut it anymore. We spoke to 5 different startup founders and asked what they worst industry for investment is in 2015. Here’s what they had to say.

“Any enterprise investment that focuses solely on the mobile-use case will be challenging. Enterprise mobility is here to stay, but is no longer a frontier for investment and innovation, rather it is part of a much larger need within the enterprise, which is productivity tools that work anywhere, anytime. In my opinion, mobility has opened up new methods of working within the enterprise, and those startups that enhance multiple methods of working seamlessly across the enterprise will be most successful.”

Chris Perret, NachoCove

“Bitcoin. It is so over hyped.  Getting excited about a crypto-currency seems so false.  Where is it? How is it protected? Does the FDIC back it? Too many questions and volatility is seems.”

Saif Rahman, Mobile First Entertainment

“My immediate reaction is to say Bitcoin as they are unstable, volatile  and confusing to the mass market. One moment their value and associated services are high and supported, the next they are at an all-time low with hardly any warning or reasoning.” 

Tim Nichols, ExactDrive

“Renewable energy in all its forms is the worst start-up industry for 2015, due to three main reasons: 1. Fossil fuel is more abundant and available now than it has been for many years, pushing prices down and changing overall perceptions to move to renewables, 2. The political landscape is not favorable with the US going into election mode and Europe still focused on getting out of financial troubles, 3. Many start-ups in this industry have not been successful and given this space a negative investment perception.”

Rolf Ritter, People As A Service

“Horsewhips of course. It used to be a sure thing until mass production of the automobile became commonplace. A further 100 years have led simultaneously to low global volumes and extreme commoditization of the market. A few visionaries believe that the emergence of the autonomous car will lead to “Horsewhips 2.0” for robot behavior correction but I remain skeptical.”

Ben O’Brien, StrechSense

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