Industry

Industry

The type of and source for private equity capital that your company should seek depends in part upon its industry focus, as many angels and venture capitalists invest in only certain industry sectors. A company can sometimes be described by more than one industry classification, but it is important to represent your company's industry affiliations to investors honestly and appropriately so that you waste neither your time nor theirs'.

National Venture Capital Association Highlights and Trends
The National Venture Capital Association, a valued Springboard partner, uses the following criteria to define a company's industry.
check Biotechnology
Developers of technology promoting drug development, disease treatment, and a deeper understanding of living organisms. Includes human, animal, and industrial biotechnology products and services. Also included are biosensors, biotechnology equipment, and pharmaceuticals
check Business Products and Services
Offers a product or service targeted at another business such as advertising, consulting, and engineering services. Also includes distributors, importers, and wholesalers.
check Computers and Peripherals
Includes manufacturers and distributors of PCs, mainframes, servers, PDAs, printers, storage devices, monitors, and memory cards. Also included are digital imaging and graphics services and equipment such as scanning hardware, graphics video cards and plotters. Integrated turnkey systems and solutions are also included in this category
check Consumer Products and Services
Offers products or services targeted at consumers such as restaurants, dry cleaners, automotive service centers, clothing, toiletries, and housewares.
check Electronics/Instrumentation
Includes electronic parts that are components of larger products and specialized instrumentation, including scientific instruments, lasers, power supplies, electronic testing products, power supplies, and display panels. Also included are business and consumer electronic devices such as photocopiers, calculators, and alarm systems.
check Financial Services
Providers of financial services to other businesses or individuals including banking, real estate, brokerage services, and financial planning.
check Healthcare Services
Includes both in-patient and out-patient facilities as well as health insurers. Included are hospitals, clinics, nursing facilities, managed care organizations, Physician Practice Management Companies, child care and emergency care.
check Industrial/Energy
Producers and suppliers of energy, chemicals, and materials, industrial automation companies and oil and gas exploration companies. Also included are environmental, agricultural, transportation, manufacturing, construction and utility-related products and services.
check IT Services
Providers of computer and internet-related services to businesses and consumers including computer repair, software consulting, computer training, machine leasing/rental, disaster recovery, web design, data input and processing, internet security, e-commerce services, web hosting and systems engineering.
check Media and Entertainment
Creators of products or providers of services designed to inform or entertain consumers including movies, music, consumer electronics such as TVs/stereos/games, sports facilities and events, recreational products or services. Online providers of consumer content are also included in this category (medical, news, education, legal)
check Medical Devices and Equipment
Manufactures and/or sells medical instruments and devices including medical diagnostic equipment (X-ray, CAT scan, MRI), medical therapeutic devices (drug delivery, surgical instruments, pacemakers, artificial organs), and other health related products such as medical monitoring equipment, handicap aids, reading glasses and contact lenses.
check Retailing/Distribution
Firms making consumer goods and services available for consumer purchase including discount stores, supercenters, drug stores, clothing and accessories retailers, computer stores and book stores. Also included in this group are e-Commerce companies ---those selling their products or services via the Internet.
check Semiconductors
Design, develop or manufacture semiconductor chips/microprocessors ore related equipment including diodes and transistors. Also includes companies that test or package integrated circuits.
check Software
Producers of bundled and/or unbundled software applications for business or consumer use inlcuding software created for systems, graphics, communications and networking, security, inventory, home use, educational, or recreational. Also included is software developed for specific industries such as banking, manufacturing, transporation, or healthcare.
check Telecommunications
Companies focused on the transmission of voice and data including long distance providers, local exchange carriers, and wireless communications services and components. Also included are satellite and microwave communications services and equipment.
check Other
If the classification criteria in all of the other categories does not appropriately describe the product or service offered, the firm may be categorized in this group.
Kaltura

Industries that Attract VC Funding (1:28 min)

Springboard Director and accountant Cal Hackeman reviews industries that are attractive to venture capitalists.