The best regulated crypto exchange
Find out why?
50 BTC prize pool!
Get your share!
I'm in

Funding for ‘on-demand’ start-ups wanes

By Charlotte Ricca

Venture capitalists put off investing due to growing criticism of the business model

Funding for on-demand start-ups wains

Funding for ‘on-demand’ start-ups is slowing down, according to a new report by Goldman Sachs.

The sector raised $87bn (£66bn, €78.5bn) of private investment from 2014 to 2018, the report said. However, venture capitalists have been put off investing in the gig economy, due to growing criticism of the business model.

Funding declined 6 per cent year on year in the third quarter, to roughly $55bn globally. The biggest decline was in China, which saw a 36 per cent drop in funding, while the US and Asia declined by 7 per cent and 23 per cent, respectively.

Only Europe witnessed funding growth, with a 51 per cent year-on-year increase.

The drop mainly affected “services with internet convenience advantages” which primarily includes ride-hailing and food delivery.

Venture capitalists said these companies may have to raise prices and cut expenses as funding dwindles.

According to analysts at Goldman Sachs there is rapid growth in enterprise-facing applications, such as self-driving cars and human resources technology.

Machine vision venture funding has also grown at a 60 per cent for the past 5 years, as manufacturing applications have multiplied.

FURTHER READING: Uber rival Ola to launch in London

FURTHER READING: Buy to let investors leave UK property market

Like to share your thoughts and ideas about crypto and trading? You could join us as an external author. Email us on [email protected] to find out how you could become a contributor.
Subscribe to news
iMac Image
The most beautiful trading app
google play storeapple store
iPhone Image
iPhone Image