Top Start-up Industries: The Future of M&A

It is true that the start-up businesses of today are likely to shape the M&A deals of tomorrow. In this blog, we take a look at the top industries for start-ups in 2016 and why investors should be keeping an eye on how these up-and-coming businesses develop.

Wearable Technology

Fitbit is a prime example of how successful wearable technology has become on a global scale. It is not just health that lends itself to wearable technology, an ever increasing number of options are entering the workplace that benefit multiple industries such as retail, field service and sales. For example, WearKinetic has designed a wrist device for the distribution industry that tracks how workers are lifting heavy boxes or materials and notifies them of whether it was done correctly or incorrectly. A survey carried out by Salesforce Research in 2015 found that 79% of early adopters believe wearable technology is, or will be, strategic to their company’s future success, with 86% planning to increase their wearable technology spending.

Fintech

There has been a buzz surrounding technology in financial services for some time now, with innovations providing some of the biggest disruptions in this sector. Fintech start-ups are not only changing the way that banks operate on a day-to-day basis, they are revolutionising areas that have remained untouched for decades. Fintech is booming in the UK with London establishing itself as the global start-up hub. Research by Let’s Talk Payments found that more than £3.8 bn of investments were made in the fintech industry between July 2015 and January 2016.

Cybersecurity

As technology becomes more sophisticated, unfortunately so does cybercrime and it seems that as soon as new security solutions emerge, hackers find ways around them. This presents an ongoing issue for businesses in possession of sensitive data and is why there continues to be significant growth in start-ups providing cybersecurity services. We will see the cybersecurity world transitioning away from on-premise security appliances and products and moving to cloud security offerings that help to simplify their network architecture.

Food Tech

The technology boom continues to have a huge impact on the food industry with companies using the internet or mobile technology to make preparation, assembly and distribution more efficient and profitable. One of the largest emerging sectors is food analytics and the development of smart kitchen appliances that assist with food inventory management. We have also seen a number of online food delivery platforms emerge, such as Deliveroo, with this sector set to grow even further in 2016. The global investment in food tech companies reached almost £4 bn across 275 venture capital deals in 2015.

Virtual Reality

2016 is set to be a huge year for virtual reality with the launch of the Facebook-owned Oculus Rift and PlayStation VR. This is just the beginning with VR start-ups multiplying, each with the promise of better headsets and more engaging content that takes this new technology beyond gaming and into business. It was predicted by investment bank Piper Jaffray that the global VR market could be as high as £3.73 bn by 2025. Also, financial services company UBS estimated that annual device sales will reach more than 34 million units worldwide by 2020.

With experience in a number of key sectors and representation throughout the Americas, Europe, Africa and Asia, Benchmark International can connect you with the right opportunity. To find out more, visit http://www.benchmarkcorporate.com.

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