It has been busy few years for Venture capital and technology. The investment environment has shifted as the industry matures, with venture capitalists now looking to back companies that show promise. Even though the 2020 pandemic has taken a toll on public and private firms’ investments, with many VCs now looking to invest at earlier stages of development, the industry may be poised for a comeback.
Venture capitalists are increasingly looking for technologies that will be game-changers or fill any gaps in the marketplace. Keeping in mind recent crises and the increased global acceptance of technology, let’s take a look at what trends to expect in the next few years.
One of the technologies that look to be a game-changer is alternative data. Alternative or non-traditional data includes items like credit card transactions, purchase volumes, GPS located data points, and social media analytics, among others. The attractiveness of alternative Data is twofold: it often provides access to underserved markets, and the Data is often more accurate than traditional sources due to accuracy issues with self-reported survey responses.
Business planners may use alternative Data in market research to understand customer demographics or human behavior patterns in certain regions. For example, a company may want to understand what holiday shoppers are purchasing on its website and how long they spend on each page. Using Alternative Data, marketers can place tags on their website pages to record the behavior of visitors. Alternative Data is not only valuable in business planning but also for consumer insights and media campaigns.
For investors, venture capitalists are increasingly looking at companies that use alternative data as a competitive advantage or means to monetize more efficiently than their competitors. Artificial intelligence is often used along with alternative data, as computers can sift through the information and find patterns that humans may miss or be unable to identify.
One of the biggest trends in technology right now is crypto-currencies like Bitcoin, Ethereum, etc. But there are still some questions that are yet to be answered. Why exactly are there so many, and what will they be worth in the future?
The main reason people are interested in cryptocurrencies is that they provide a decentralized way for transactions. This means you don’t need any banks or credit cards, and your information stays private instead of being given out all over the internet like it would be if you paid through PayPal, etc.
The price of bitcoin, which was the first decentralized cryptocurrency, has been very volatile. A few reasons for this may be because now more people accept it as a currency, and governments are starting to regulate it better. On the other hand due to support from venture capitalists, these blockchain based projects are booming. And as a result certain banks have also begun trading bitcoins which has made buying bitcoins easier and safer for mainstream investors.
AI-based tutoring systems
One of the trends that are predicted to change how we learn is Intelligent tutoring. Rather than relying on a teacher to teach the material, intelligent tutoring relies on algorithms and artificial intelligence to make learning more personal and interactive.
Smart systems collect and process data from student responses and then use machine learning and artificial intelligence to “teach” material based on what they know about their learners. There are many advantages to this new approach: it challenges students individually, instills confidence in their abilities by giving them personalized feedback, and provides students with various methods for any given lesson so each student can learn in their own way.
Automation and technology adaptation
Recent advancements in technology are aimed at making things automated. Theoretically, this will make tasks easier for everyone involved because they won’t have to waste time figuring out how best to do a task because a computer program would take care of it. This is a great way to save time and cost for a business. AI marketing is all about making automated decisions based on the data collection and data analysis which will result in exponential growth of businesses.
There is also the idea of making automation easier and more accessible for businesses. However, this is not an easy feat to accomplish because it requires a lot of research and trial and error before it can be accomplished successfully.
Technology and business trends will continue to evolve in the coming years. The future is here, which means that new opportunities are popping up all over the place. Whether it’s a new app or a new social media platform, there’s always something changing. Businesses have to stay up to date on what’s happening. Above are some venture capital and technology trends on which venture capital investors will keep a close eye.