Second Half of 2021 Set to Be an Ideal Time for MBA Entrepreneurs, Reports Find

2020 was an extremely difficult year for entrepreneurs. Lockdown, in-person activity restrictions and travel bans slowed down business operations across the globe, affecting start-ups across industries, from banking to fashion and food and drink.

Nevertheless, according to data from Dealroom and PitchBook, 2021 is set to be a great year for start-up investment, with US and European investors expressing interest in backing new companies across the globe. In fact, in the first six months of 2021, global venture capital investment has already beaten previous records, with an incredible US$312bn poured into the market so far.

2021 on track to nearly double 2020’s US total investments

According to PitchBook’s NVCA Venture Monitor, in the spring of this year, venture capital (VC) funds invested US$75bn in US-based start-ups, making 2021’s total so far climb up to US$150bn.

This is an incredible figure compared with 2020’s total investments, which only amounted to US$164.3bn.

The report also found that non-traditional investors are also putting money into start-ups. These include mutual funds, hedge funds, corporate investors, and crossover investors. This interest showcases just how well the entrepreneurial market has been recovering throughout the COVID-19 pandemic and how promising the upcoming years are for aspiring entrepreneurs.

Europe to hit record heights

While the US is known for being a popular hub for start-ups, a report by Dealroom found that Europe is also on track to have its biggest year for start-up investment in recent history.

In fact, the region has been the fastest growing this year, with investment into European start-ups growing to US$57bn and making up 18 percent of global start-up funding.

Europe has also seen a significant growth in terms of business hubs. Multiple countries in the region have emerged as friendly places for entrepreneurs to fund start-ups, including Norway, the Netherlands, Sweden, Denmark, Spain, Austria, Finland, Germany, the UK, Italy, France, Switzerland Russia, Belgium and Ireland.

What does this mean for MBAs?

Given that entrepreneurship is one of the most popular specialisations at business school, these findings represent a silver lining for MBA applicants, students and graduates around the world.

It’s clear that now more than ever investors are looking to seize opportunities to promote innovation across sectors. And with new, more flexible ways of working, it’s important that entrepreneurs keep up with new trends not only in the market, but on the workplace as well.

Some industries that are expected to continue growing and that are ideal for MBAs to launch a start-up in this year include:

• Healthcare and pharmaceuticals: It’s undeniable that 2020 represented a huge year for the healthcare sector. Never before did access to efficient and effective healthcare seem so crucial on such a large, continent-spanning scale. For this reason, it’s safe to say that investors will look to back entrepreneurs who can provide excellent health and pharma services while also maximising the use of technology.
• Fintech: 2020 was the year of distancing, with use of cash decreasing significantly across all age groups. Unsurprisingly, fintech start-ups emerged as one of the stronger players in the VC market: they received US$1 out of every US$5 invested in the second quarter of 2021, CB Insights found. From online banking to AI investments, there are plenty of areas to innovate in.
• Transportation: Nowadays, convenience is one of the qualities consumers look for the most in products – and this applies to transportation too. The transportation industry is particularly profitable because it includes sectors where tech and innovation have been promoting growth for several years, such as ridesharing, electric travelling and food delivery services.