The social and gaming sub-industries have seen a lackluster seed follow-on rates while two enterprise-oriented markets, customer relationship management and project management have fared the best.

Follow-on investment rates are declining for tech companies receiving seed rounds (the infamous Series A Crunch). But follow-on investment rates are not uniform across industries within tech.  At the sector level, mobile companies are attracting follow-on investment at a higher rate than internet companies. This may not be surprising given mobile just had its largest quarter for VC ever.

But we wanted to peel back follow-on rates by sub-industry to get a sense for where investor sentiment remains strong and where it may be waning.

The Losers

Across the cohort of 762 seeded tech companies which received seed funding, Social did the worst taking the last spot on the list sub-industries by seed follow-on rate.  Again, not all that surprising given that Q2 2013 venture capital tallies saw social only taking 2% of internet sector funding.  The gaming space also a tepid follow-on rate of just 24%, consistent with declining VC interest and money in the space overall. And despite a spate of recent Ad Tech IPOs including Criteo and Rocket Fuel, seeded companies in the Advertising, Sales & Marketing sub-industry also fared poorly coming in at below the overall tech seed follow-on rate of 34%.

The Winners

On the flipside, two enterprise industries, Collaboration & Project Management startups and Customer Relationship Management took the highest follow-on rate. And photo startups, which remain hot with VCs, are also receiving approval for follow-on funding at a high rate. Given the boom in digital health financing, it is no surprise that Health & Wellness has also seen a strong follow-on trend with a 42% follow-on rate.

FollowOnBySubindustry

(Note: Only subindustries which saw at least 15 seed deals in the cohort were included in this analysis.)