We have all heard of the age old wisdom:

Change is inevitable

But we barely stop to reflect on it. With the passage of time and my growing interactions in the market, I have truly started to believe that change is constantly engulfing us.

As a Venture Capitalist, I don’t have to look too far for proof. If I just observe the market around me, I notice how far we have come since my initial days as an entrepreneur. Trying to keep up with trends that are upcoming in the investor space is truly exhausting at this point, because there is so much happening at the same time. What fascinates me is that even though we are surrounded by technology at all times, we have only just begun to discover the potential of upcoming technologies. I shall endeavour to single out some trends that I have personally noticed achieving prominence in the current market scenario.

Initial Public Offerings (IPO)

The startup space is categorically witnessing a rise in the popularity of IPOs or Initial Public Offerings.

Companies such as Uber and Lyft are well on their way to go public by the end of this year. Indian startups too have jumped on this IPO bandwagon and are deciding to go public by the hundreds, and can we blame them really?

Capital expansion is on the charts for all of these companies and they are looking to rake in massive revenues from this decision to go public. At the end of the day, every company wants to gradually expand with time.

There has also been a noticeable shift in the earlier narrative, that only small companies go public in hopes of blooming into a bigger business. With companies as big as Uber and Slack willing to go public, the market is definitely gearing up towards a paradigm shift in terms of shareholding among big corporations. Additionally, the available liquidity will be beneficial for investors and founders as it will pump capital back into the ecosystem by allowing employees to start angel investing into upcoming startups.

Emerging Technologies

Another strong investing trend that I have noticed is the dominance of emerging technologies like Blockchain, Internet of Things and Artificial Intelligence. Although AI has been creating buzz for a long time now, I group it under ‘emerging’ technologies because of how it is constantly being experimented with, to fuel new possibilities that were previously considered unimaginable. Blockchain is establishing itself as an incredibly significant technology, while riding on the wave of ‘decentralization’, the buzz word for the year.       

People are looking for real change in the way they share their data and how major corporations handle their data. With technologies like blockchain, people are being exposed to the idea of having a transparent system where data is accessible to all and one is in control of their own data. Startups are experimenting massively with blockchain. I am constantly impressed by the bright new ideas that young entrepreneurs in our country are working on, by making use of such upcoming technologies. One can expect more permutations and combinations between these technologies that will enhance concepts of self driving cars, or robots that do your odd jobs for you.

With AI and Robotics coming up strong, that field is ripe for all sorts of investments. Nascent startups related to blockchain and crypto are also expected to play around with the tech. Mention worthy here is the expected 5G phase one rollout on a massive scale in many countries. Not just ground based 5G towers, but also launch of satellites into space. However, since I explored the health risks of the technology which are severe, I advise investors to exercise caution while deciding to invest in that space.   

Crowdfunding (ICO, STO, IEO…)

Looking at the change in the investor space, it is quite apparent that the traditional model of venture capital funding is becoming exactly that, traditional. Crowdfunding and alternative business models of funding are slowly gaining momentum. I wouldn’t go so far as to say that VC funding is becoming obsolete, but it is definitely being upstaged by these new alternative models that are now stepping forward into the mainstream. ‘Mega-funding’ might just take a mega hit this year as crowdfunding becomes the new norm.

There is an evident inclination towards a more open system where people are being given an opportunity to participate. With the Venture Capital market being rigidly closed off, it is estimated to die down as more contemporary models of raising funds elbow it to the side to hog the limelight.

It is truly a time for traditional Venture Capitalists to evaluate their investing options, and possibly keep an open mind.