Bad advice: don't build startups that touch the real world.
Hardware is hard. Choose bits, not atoms. There are a lot of standard lines about why building startups that make physical objects is a much harder path than building software.
Happily, investors are starting to buck that trend!
Heatmap below shows percent of total investment into Carta startups by broad industry and year.
In 2019, B2B SaaS reigned supreme, taking up 42% of all VC investment in priced rounds.
In 2023, SaaS only garners 30% of the total pie.
𝗧𝗵𝗲 𝗻𝗲𝘄 𝗳𝗮𝘃𝗼𝗿𝗶𝘁𝗲𝘀
Pharma / Biotech commands about 15% of all investment into startups these days
Energy (renewables mostly) has moved from 2% to 11% (!)
Hardware rose from 6% to 10%
𝗟𝗼𝘀𝘁 𝘀𝗼𝗺𝗲 𝗹𝘂𝘀𝘁𝗲𝗿
Consumer investment has dropped from 14% to 8% over the past 5 years
Fintech is down from a peak of 13% in 2021 to only 5% so far in 2023
Love to see this expansion in venture-backed industries. More startups tackling more problems, especially tangible ones in hard spaces = better for everyone.
More data in our weekly Data Minute newsletter (link in first comments). Big week ahead - new data on startup valuations across all stages coming shortly 🔥
#cartadata #renewable #startups #fundraising #hardware
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. © 2026 Carta. All rights reserved. Reproduction prohibited.
