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2021: What was hot among startups, and what was not-so-much?

Social platforms, food tech and K-12 edtech drew the most investor money this year, according to Tracxn's annual report.

December 31, 2021 / 03:59 PM IST
The number of first-time investors in start-ups has gone up impressively over the last one year. (Representational image)

The number of first-time investors in start-ups has gone up impressively over the last one year. (Representational image)


Social platforms have seen a massive surge in investor interest in 2021. They saw a whopping 1,259% increase in funding over the previous year's, and became the hottest sector this year in terms of dollars raised, according to Tracxn's annual report.


They raised $1.4 billion this year.


In getting maximum funds, food tech came second with $1.3 billion and K-12 edtech, third, with $1.1 billion.


Social commerce came last in this of 15 startup business models, and raised $0.5 billion. But, the value of funds into the category shot up by 8,725% over last year.


What-were-the-hottest-business-models-in-2021Among investors, Sequoia Capital was the most active, and it was more partial to Series C+ rounds. Also among the top five, Titan Capital and Blume Ventures seem to have placed more faith in entering early in the game, investing more in seed rounds.

Top-investors (1)

Nearly all the top PE players seem to have gravitated to Series C+ rounds. Only the most active among the five, Temasek seems to have ventured into seed rounds.

Top-PEs (1)

Fintech and solutions for SMBs seem to have blinked more on accelerators' radar.

Top-Accelerators

Consumer companies seem to have caught corporates' interest, more than B2B ones.

Top-Corporates
The report records an impressive increase in first-time investors this year. The number went up to 1,145 from the 708 last year. Over the last ten years, the number has grown nearly 18x.
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