Feb 18, 2022
VC Funding: Watch New Trends That Will Make 2023 Fantastic
In 2022 and beyond, a lot of people hope for normalcy and financial growth. The venture capital sector offers such hope in the form of seed funds to many people. Seed funding is provided at an initial stage of a new business for its growth. The ongoing expansion of the venture capital sector could aid in reviving the economy and resolving the financial services sector. The patterns in venture capital this year are significantly different. However, they do share one trait: quick data analysis. The venture capital business must comprehend the significance of data processing technologies that can manage exponentially growing volumes of insightful data, resulting in an unheard-before period of investment information.
Sustainability: Challenges and Opportunities
Global awareness of the reality that climate change will present a much greater challenge than anything we have seen in recent decades and will much exceed the difficulties posed by the Covid outbreak is growing. In other words, investors and customers favour companies with the right environmental and social credentials, and conscious consumers — those of us who consider aspects like ecological impact and sustainability when deciding whom to buy from or do business with — are driving purchasing trends more and more. The environmental, social, and governance (ESG) practices that businesses use in 2023 must be put to the forefront of their strategy. The evaluation and strategies should also cover the full supply chain and the suppliers' ESG credentials in addition to the boundaries of the organisation. Startups in the energy sector especially renewables have been leveraging the attention of the world on climate and environmental issues
Startups in the renewable have been getting serious attention from Venture Capital firms across the world to obtain seed funds. Sustainability, innovation, and fiscal stability drive the growth of startups that offer disruptive solutions. Globally, Celtic (Scotland), ResponsAbility and Serengeti (Nairobi), proton-tech (Canada), Cherry Street Energy ( Atlanta-US), Enernet Global (New York-US), Inti-Tech (Chilli), Siqens Gmbh ( Germany), Renewable Properties (USA) and Envira (Germany) have attracted startup investors and got funding to expand their reach and impact. For example, recently GreenTech startup Envira-the Frankfurt-based startup raised €22.5 million in Series A funding. In view of the world’s attention on Climate Change, startup funding in Renewables is expected to go up in 2023.
Sales of electric vehicles were 0.8 million units in 2016; by 2023, they are expected to reach 5.3 million units, with a CAGR of 33.6%. (2017–2023). One of the major developments in the market for electric cars is partnerships and joint ventures. Major businesses in the sector have been working together with regional players.
Web 3.0: A dominating Domain
The worldwide blockchain market is predicted to reach $39.7 billion by 2025. The exponential growth of the Web 3.0 industry, which also includes Metaverse and Artificial intelligence, has made it enough of a trend to stand on its own. According to IDC research, governments and businesses would spend more than $500 billion on AI technology globally in 2023. The yearly report, which includes a detailed deep dive into gaming's revenues, player engagement, and the trends guiding the future of this $159.3 billion sector, is the gold standard for comprehending and sizing the global games market. Since bitcoin is less regulated than traditional investing, venture capitalists have discovered that it offers a more alternative trading strategy. Like an initial public offering (IPO), cryptocurrencies use initial coin offerings (ICOs), which let businesses generate money through virtual currency. This approach has shown to be very successful for both VCs and businesses looking for more adaptable methods to invest or find seed funds. The year 2023 holds a lot of promise for the video game industry.
Fintech Solutions: Favourites of VC firms
The COVID-19 outbreak has altered modern society and created a wide range of new economic prospects. The banking industry had to convert predominantly to a digital-only model. It led to the Fintech market experiencing rapid expansion. Financial institutions like banks and private businesses have provided seed funding for startups in tech-based software solutions, but many FinTech startups have also been successful in getting off the ground. The ensuing technological advancements raised client expectations, which in turn fuelled market expansion on a global scale. The market for fintech apps will reach $305 billion by 2025, according to the Research and Markets report, expanding at a double-digit CAGR of 25.18% from 2022 to 2027. Investors are now interested to provide seed funds in FinTech firms as a result of the industry's potential, and some sectors stand out and grow more rapidly than others. Insurers, buy-now, pay-later businesses, blockchain and cryptocurrency trading platforms, payment services, and insurance are among them.
Data Analytics: Startup Investors Look Forward
Due to the unmatched pace of innovation, new innovative technologies are appearing at an almost constant rate. As emerging tech companies compete with long-standing corporations to disrupt every industry, startup investors have an attractive potential to profit from the trend. By the end of 2021, there will be over 116 unicorns—private companies valued at or over $1 billion—according to GlobalData, a data analytics company. This surge will be attributed to increased investments in fintech startups. Collectively, they are valued at $529 billion, which is nearly 50% more than JPMorgan Chase, the largest bank in the United States. Businesses will realise in 2023 that data is essential to comprehend their clients, creating better goods and services, and optimising internal processes to cut costs and waste. It is becoming more and more obvious that this will not fully occur until frontline, shop floor, and non-technical personnel, as well as departments like marketing and finance, have the ability to act on data-driven insights.
Bioinformatics: Changing the Way of Life
The biotech sector is already estimated to be worth $299 billion. And if DNA analysis gets more widespread and sophisticated, that number could rise. Ancestry tests have been popular in the past ten years to provide information about your ancestors. But soon, our DNA might influence how we behave. For instance, DNA Nudge offers a DNA test using a cheek swab, a smartphone app, and a wristband called a "DnaBand." With the help of these two technologies, you can receive nutrition advice that is uniquely adapted to your DNA. Additionally, DNA testing may be able to provide information that goes far beyond what to eat for breakfast. The ideal workout regimens or skincare products for each customer's own DNA fingerprint may be determined by artificial intelligence in new items in this category. We will not only be adjusting to our DNA in the future. The fundamental DNA will probably change to align with our present objectives and way of life.
Internet of things (IoT): To Make 2023 Fantastic!
The ultimate digital universe is the technology you need to get ready for in 2023. You can construct anything in the real world and mould your actual experiences thanks to the digital metaverse. Digital twins, nanotechnology, and the metaverse are all part of the internet of things (IoT), which is the ultimate vision of the future of the planet. A technology that connects everything is referred to as the "internet of things." The story takes place in a universe where everything is interconnected. Because they will make it possible to connect more devices and support multi-device communication, the 5G and 6G technologies will be utilised for more than only communication in the internet of things. An important innovation that has the potential to hugely transform civilization is the IoT. In terms of medicine, education, well-being, and quality of life, it would improve everything and usher in a new way of life for people. In this age of modernization and digitalization, the world is changing online, and each of those advances is having an effect on the real world. Let us see what 2023 has in store for us and how far technology has advanced since 2022, which was a fantastic year for technology by JC Team!