Best Sector-Specific VC Investors in Q3, 2024
While funding from any source is appreciated in startup circles, it is always reassuring when you have the backing of an investor with deep expertise in your sector. Such investors not only offer valuable guidance but also grant access to a network of portfolio companies, founders, investors, and professionals who can accelerate your growth. Their specialized knowledge and experience can help identify valuable opportunities and avoid costly pitfalls.
These investors foster innovation and create long-term value for themselves as well as society by maintaining a focus on particular sectors. Hence, in this article, we will talk about some of the best sector-specific investors out there. Read on to know more!
TechStars and Antler: Leading investments into technological services
With 77 investments in Q3 2024, TechStars was not just the most active investor in the technological services sector but also in general. In September, TechStars made 12 new investments, out of which 41% were pure software startups. TechStars’ focus on supporting scalable solutions for global issues is evident from its investments into Dedalo AI, a startup that optimizes energy consumption in IT, LambdAI Space, an AI-enabled climate risk assessment platform, and Parastruct which transforms manufacturing waste into fully circular construction components.
Other investments by TechStars in this period include Carbontribe Labs, Inner Peak AI, HACKERverse, Jaipur Robotics, Cargoplug, ARgrid, Ecomtent, Buildstash, Autoket, and SATIM.
In this period, TechStars also secured 2 exits with Zelta AI being acquired by Pendo and Nickelytics being acquired by Kiwibot.
TechStars was closely followed by Antler, the world’s zero-day investor, which invested in 53 startups in Q3 2024. It appears that Antler plans to focus on Asia. The venture capital firm invested in 30 Indian startups in 2024, and recently, raised $72 million for its second Southeast Asia fund which invests in Indonesia, Singapore, Vietnam, and Malaysia.
In Q3 2024, Antler invested in technology-based startups such as Fastn, Capsa AI, Milo Mobility, ByteGami, RiskLayer, Proof of Skill, and Alphaguard. Some of Antler’s other investments include TradeCredit, a fintech startup aiming to democratize credit, and Namma Yatri, a ride-hailing service that cuts the middlemen to offer competitive prices.
Other highly active investors focusing on technological services in Q3 2024 were FJ Labs, Andreessen Horowitz, General Catalyst, Alumni Ventures, Pioneer Fund, Sequoia Capital, Accel, and Khosla Ventures.
Innovate UK and Qiming Venture Partners: Driving innovation in healthcare
After technological services startups, healthcare startups garnered the most attention with Innovate UK investing in 35 startups and Qiming Venture Partners investing in 23 startups in Q3, 2024.
In August 2024, Innovate UK invested £3.2 million into research projects aimed at improving mental health services as a part of its Mindset program. This program is currently backing innovative projects such as AI-based treatments for eating disorders, low-cost VR treatment of post-traumatic stress disorder (PTSD), and digital therapy for perimenopausal insomnia and anxiety.
In September, Innovate UK also launched a funding competition where companies could compete for a share of £15 million to develop innovative healthcare solutions.
In Q3 2024, Qiming Venture Partners participated in funding rounds of startups such as LongBio, Candid Therapeutics and Zhongyi Rehabilitation. Some of their past investments include Zai Lab, CanSinoBio, Tigermed, Schrödinger, APT Medical, and Berry Genomics.
Other notable investors in this sector are the European Innovation Council, Legend Capital, Matrix Partners China, Venrock, Polaris Partners, Eight Roads Ventures, F-Prime Capital, and Korea Investment Partners.
International Finance Corporation and Goodwater Capital: Pioneering financial inclusion through venture capital
The fintech sector continued to attract significant venture capital interest this quarter. Some of the top investors in this sector were the International Finance Corporation (IFC), Goodwater Capital, Global Founders Capital, British International Investment, Village Capital, QED Investors, Tenity, Anthemis, Ribbit Capital, and Citi Ventures.
IFC, the World Bank institution dedicated to helping the private sector in emerging markets, made 24 investments in Q3 2024. In addition to providing financing to banks like Golomt Bank, Banque Populaire du Rwanda, Bank of Palestine, and TBC Bank Uzbekistan, the IFC also extended funding to startups such as TerraPay, Vastu Housing Finance, and Drip Capital.
Goodwater Capital is a venture capital firm focusing on consumer tech startups that made 11 investments in Q3 2024. Among consumer tech companies, Goodwater Capital displays an affinity for B2C fintech companies.
Its fintech investments include Payhere, Toss, Monzo, MoMo, Stash, and Treinta. In August, Goodwater Capital participated in a $212 million equity and debt financing round for Stori, a startup working to extend credit card access to the underserved in Latin America.
In August, Goodwater Capital made a follow-up investment in Payhere, an online payment gateway service operating in Sri Lanka. This was a Series B2 funding round, an extension to the startup’s Series B funding round from April 2023.
IndieBio and ARCH Venture Partners: Reshaping human existence through biotech investments
Q3 2024 was a dynamic quarter for biotech with innovative technologies like RNA and gene therapy and programmable cell therapy attracting investors. Some notable investors in this sector are IndieBio, ARCH Venture Partners, Atlas Venture, RA Capital Management, Future Planet Capital, Novo Holdings, Sofinnova Partners, IMM Investment, Parkwalk Advisors, and IP Group.
IndieBio is the largest biotech accelerator run by SOSV, a venture capital firm focusing on deep tech startups working on human and planetary health. September was a busy month for IndieBio with the program investing in 11 startups including Gatehouse Bio, BugBiome, Sóliome, and DNAzyme. The accelerator program invested in a total of 18 startups in Q3 2024.
The shared focus areas of IndieBio’s recently invested companies are:
- RNA and gene therapy: Gatehouse Bio and DNAzyme
- Sustainability through biotech: BioMetallum, Fermeate, Capro-X, and Transition Biomining
Another extremely notable biotech investor in Q3 2024 was ARCH Venture Partners, a venture capital firm focusing on information technology, life sciences, and physical sciences. Some of its notable investments include unicorns such as Transcenta, Brii Biosciences, and Altos Labs.
In Q3 2024, ARCH Venture Partners invested in:
- ArsenalBio: A programmable cell therapy company
- EGenesis: A startup building a gene editing platform for developing human-compatible organs, tissues, and cells
- AIRNA: An RNA therapeutics company
- Autobahn Therapeutics: A startup combatting central nervous system (CNS) disorders
- Shenzhen Capital Group and Shunwei Capital: Redefining the future of manufacturing
Although manufacturing has been overshadowed by fintech and emerging segments like artificial intelligence (AI) in recent times, we are now witnessing a renewed surge of venture capital interest in manufacturing startups. Some of the notable investors in this sector are Shenzhen Capital Group, Shunwei Capital, Advantage Capital, Shinhan Venture Investment, Fonds de solidarité FTQ, Walden International, Fortune Venture Capital, Xiaomi, Addor Capital, and CICC.
Shenzhen Capital Group is a venture capital firm managed by the Shenzhen government that focuses on next-generation information technology, high-end equipment manufacturing, biotechnology, new materials, and new energy. Like IndieBio, Shenzhen Capital Group made a chunk of its Q3 investments in September.
This month, we saw Shenzhen Capital Group invest in Boardstone Intelligence, an industrial 3D vision inspection solution provider; Inspire-Robots, an innovator in core robot components; Aerospace China Electronics, a chip solution provider; and Fast Photonics, a company involved in developing high-speed optical module products.
Shunwei Capital, another Chinese venture capital firm, has a focus on consumer Internet of Things (IoT) products, deep tech and smart manufacturing, mobile internet and internet+, and rural internet. Some of the notable companies in its portfolio are Xiaomi, Huami, iQiYi, NIO, and VIOMI. This VC firm is always on the lookout for technologies that can disrupt traditional industries and services.
In Q3 2024, Shunwei Capital invested in companies such as Infinigence, an AI infrastructure company; Mihuo Intelligence, an industrial equipment provider and manufacturer; and Tanshao Technology, a manufacturer of special equipment for semiconductor devices.
Breakthrough Energy Ventures and Elemental Impact: Catalyzing sustainable solutions
Innovations in energy production and distribution remain central to tackling global warming and ensuring sustainable development across economies. Hence, this sector continues to attract fervent investors such as Breakthrough Energy Ventures, Elemental Impact, EIT InnoEnergy, Chevron Technology Ventures, and Lowercarbon Capital.
Breakthrough Energy Ventures (BEV) is the venture capital offshoot of Breakthrough Energy, a group of organizations founded by Bill Gates that aim to make sustainable energy a reality. This investment firm invests in cutting-edge energy startups from the seed to the growth stage.
In Q3 2024, BEV has invested in exciting startups such as 44.01, a startup aiming to reduce CO2 by mineralizing it; Graphyte, a startup developing low-cost carbon removal solutions; Type One Energy, a startup that wants to provide sustainable and affordable fusion power; and Dandelion Energy, a geothermal home heating and cooling solutions provider.
Elemental Impact is a non-profit climate tech investor that provides catalytic capital to entrepreneurs with project expertise who operate in partnership with local communities. Previously, Elemental Impact invested in Xos Trucks, Heliogen, OhmConnect, eMotorWerks, Amply Power, Blyncsy, Cambrian Innovation, Geli, and Opus One.
In the recently concluded quarter, Elemental Impact invested in Applied Carbon’s $21.5 million Series A funding round. This funding round was initiated once Applied Carbon developed a solution for collecting agricultural residue and converting it into biochar, a substance that can improve soil quality.
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To no one’s surprise, on account of scalability and economies of scale benefits, technological services remain the most popular destination for venture capital with TechStars and Antler leading investments in this sector.
In Q3 2024, we also saw Innovate UK and Qiming Venture Partners play a key role in advancing mental health treatments and addressing autoimmune diseases through their strategic investments.
The contributions made by the International Finance Corporation and Goodwater Capital towards enhancing financial inclusion and enabling seamless transactions cannot be ignored.
A common theme followed by investors across segments is a focus on innovation with high growth potential and global impact. This revitalized appetite for emerging technologies, sustainability, and scalable solutions is good news for founders heading into funding rounds. To highlight the financial strength of your startup and secure an optimal valuation, consider obtaining a professional valuation report from an independent expert like Eqvista. Contact us today to discover how we can help drive your fundraising success!
