What Industries are Next Up?

Hello and happy Monday! Now, I am sure that everyone is used to hearing about “the next big AI startup” and the innovations being made in machine learning, but what other sectors of tech are booming? While I am not claiming that AI is not an area of focus, as AI bleeds into every industry regardless of its nature, I want to shed light on some trends in less mainstream industries that point to significant growth and opportunity.

For startups, where Venture Capital(VC) firms are putting their money is an insightful indicator for which industries companies like startups can thrive the most. Over the past year, Global VC funding has increased by over $60 billion dollars from $364.19 billion in 2025, up from $301.78 billion in 2024, and this growth rate is expected to only continue to rise.

Y Combinator(YC) and Andreessen Horowitz, two top VC firms, recently released their annual predictions for future growth: Y Combinator’s Request for Startups (RFS) and Andreessen Horowitz’s Big Ideas in Tech. Y Combinator and Andreessen Horowitz: Shaping the Future

Below is an infographic of 4 of YC’s top picks and some startups that are thriving in these spaces.

Government & Public Safety (AI for Admin & Privacy-Preserving Surveillance)

• Example: Clearview.ai – Uses advanced computer vision and AI to assist law enforcement with facial recognition while balancing privacy concerns.

US Manufacturing (Automated Systems with ML & Robotics, Tesla Gigafactory Model)

• Example: Bright Machines – Specializes in AI-driven microfactories and automated manufacturing to modernize U.S. production.

Stablecoins 2.0 (Business-Focused Stablecoin Management & Developer Integration)

• Example: Circle (USDC) – Provides stablecoin infrastructure for businesses, including APIs for seamless integration into financial systems.

AI-Aided Engineering (Modernizing CAD/CAM & AI-Assisted Design Validation)

• Example: nTop (nTopology) – Develops AI-powered design software for engineers to optimize and validate complex manufacturing designs.

Each of these startups aligns with YC’s vision of leveraging AI, automation, and blockchain to drive innovation across these sectors.

While looking at VC’s desires is helpful in understanding where the future of startups will go, it is not an all-encompassing metric. One of the best signals to understand what industries are brimming with opportunity is the number of patent filings.

In 2024, the U.S. Patent and Trademark Office (USPTO) granted 326,921 patents, reflecting a 3.8% increase from the previous year. This surge highlights a strong innovation economy, with specific industries leading the charge in patent activity.

Leading Industries in Patent Filings

1. Computer Technology: In 2020, computer technology led with 62,686 patent applications in the U.S..

2. Artificial Intelligence (AI): AI-related patents, particularly in machine learning and computer vision, have seen substantial growth. China has emerged as a leader in generative AI patents, filing six times more than the United States between 2014 and 2023.

A high volume of patent filings often correlates with robust research and development efforts, signaling industries that are likely to experience significant growth. Industries with increasing patent activities are typically at the forefront of technological advancements, attracting investments and driving economic expansion.

While AI continues to shape every industry, it's important to recognize the broader tech landscape brimming with opportunity. From government automation and advanced manufacturing to stablecoins and AI-driven engineering, innovation is happening across multiple sectors. For startups and investors alike, staying ahead means keeping an eye on these evolving industries—because the future of tech isn’t just AI, it’s everything AI touches and beyond.

Hey! Thanks for tuning in this Monday, and here is part 2 of our startup spotlight segment. This weeks spotlight is…………… Stoke Space!

Stoke Space is redefining space transportation with its fully reusable Nova rocket. Founded in 2019 by former Blue Origin and SpaceX engineers, this Seattle-based startup has already raised $480 million and aims to dramatically reduce space launch costs. Their innovative two-stage rocket design promises to make orbital missions more accessible and affordable, challenging traditional space transportation models. With successful test flights and backing from top-tier investors like Y Combinator, Stoke Space represents the next generation of commercial space technology.

Thanks for tuning in this week! We appreciate your curiosity and engagement, and we’ll see you again on Friday with more insights on the latest in tech and innovation.