Aligning funding needs to investment goals

Sectoral Analysis

While market research is essential for investment decisions, sectoral analysis is highly recommended. Most start ups start operating in a nascent sector of the market. The success of the venture is not only dependent on the market acceptability of the product or service but also on how the sector is expected to perform. While sector wise analysis is available for established sectors, these are not readily available for nascent sectors that start ups tend to address. A time line adjusted sector analysis will indicate the opportunities and risks of the sector as it evolves into a mature market. Let us say 3D printing is making waves as a technology with a potentially large market, start up may have to concentrate on a particular sector which has an application for 3D printing. One may be interested in a focussed analysis of 3D printing in dental care sector and how the sector adopts 3D printing over a period of three years.