Travel & Tourism industry lost 58% in startup funding from 2019 to 2020, according to study
Some people baked their way through the year Covid struck. Others tried working from home. And, across the world, more than 10,000 new startups were launched.
In fact, global startup funding rose 42% in 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.
More findings 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%).
Startups received 42% more funding in 2020 than they did in 2019.10,468 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.
