The SaaS sectors startup investors like the best in late 2020

by | Sep 13, 2020

Overall software tech is booming, especially for the biggest tech companies. In the “almost” post-COVID world, there are winners and losers in early-stage software sectors that full -time early-stage investors follow.

Last week I asked 10 full-time angel-group leaders and professional seed investors which SaaS sectors are the best and worst for them right now.

Here’s what they said. First, the sectors that are doing great:

  • Exciting sectors first:
  • Education – K-12, eLearning
  • Productivity – WFH, collaboration, automation
  • Healthcare- telehealth
  • Ecommerce
  • Cybersecurity
  • Construction tech
  • Customer service/support
  • Logistics and supply chain

Here are the sectors these investors are avoiding right now:

  • Hospitality (hotel, restaurant)
  • Travel
  • Fitness (in-person)
  • Gig job platforms for low-skilled workers
  • Conference/event mgt.
  • Hospital tech – mgt. systems

I see the same sectors on both lists, with the addition of positive growth in sales/marketing tech and cloud technologies, which typically benefit larger tech companies vs startups.

Early-stage investors are looking very hard for good software companies to invest in. There is still plenty of money out there.

And investors are getting it done remotely on Zoom for now.