Trends Influencing Venture Capital Market: Never Before Need to Fuel Innovations

Nowadays, the exponential rise of technology is leading to innovations at such a large scale, that it needs commitment, if one wishes to maintain a steady pace with the world. Our growth has been always dependent on innovation and creation. VC investments, supporting these innovations, are growing rapidly and taking industry to newer heights.

There were considerable technological changes in the last fifteen years than in the past one fifty years, and more in the past one fifty years than in the past one thousand years. Communication has become pervasive and instantaneous; Facebook and Twitter can be given as the best examples of this. Leveraging our creative intellect further, today’s scenarios greatly increased our productivity. And the most resulting factor in changing the face of the industry is, innovators are given chances, at an exponential level. Entrepreneurs/Innovators can prove their ideas with the help of seed funding, which is a good picture according to many Venture Capitalists. But this is just the part of the VC jigsaw, what could be the rest of the pieces that, when put together, prove insightful to the entire VC industry?

Things that will be Connected to Internet

At CES, the Internet of Things (IoT) was trending and getting a lot of attention. As from homes to thermostats to toasters will be connected to the internet, for many organizations, this is the next big thing. Furthermore, there will be myriad applications which will be discovered for IoT in the mining, agricultural, industrial, and other B2B sectors. 2015-16 is proving to be an important year in the growth of IoT, as more products rolling out and staying online continuously. However, widespread acceptance to this and product deployment to the users is still likely to take place a few of years ahead.

The investors are looking for disruptive technologies, innovations and people which prove to be promising for IoT businesses. For businesses, it’s a signal that now is the time to launch or re-launch B2B and B2C companies. Brands across multiple industries are already under pressure to create cloud-connected products to avoid being left behind.

Hands that Reach Globally

Technology is disrupting every industry on the globe. B2C-based companies are now able to reach a global audience due to the internet. Solution providers are finding newer ways to find clients and are on their toes to keep them happy. Professionals are working and communicating with the global online consumer base, using social media and other tools.

As per the experts, the middle class is rising at a faster rate in developing countries, resulting in increased demand for products in those areas. For advertising and marketing of some products, campaigns are being run in multiple geographical regions to tap a bigger number of audience. The picture we are seeing now, considering the growth potential and talent, several global VC firms are seeking opportunities to invest in Asian start-up ecosystems.

Hardware that is Ingenious

Innovative hardware companies resulted in industry’s rapid growth in last 10 years. From servers to gadgets like the smart watches and virtual reality devices, which connect with the user, to give personalized computing experience. This scenario is attracting investors which are willing to take calculated risks.

Due to increased number of competitors, a tremendous drop in hardware production costs is seen. Experts mention phenomenal successes like, FitBit Beats, and the GoPro camera as examples of hardware products which combine low-cost manufacturing with a high overall ROI.

Currencies that Change Their Form

Transaction methods like Apple payment, Bitcoin etc. certainly have the potential to revolutionize the traditional methods over the next decade. Experts point out, that the most important part of Bitcoin is its revolutionary blockchain technology, and not the currency which is used.

Hence, shifting our focus on the core technology will result in faster payment methods, reduced financial friction, as well as accountability and transparency.

Security Measures that are Sprinting to Keep Up

Technology is rapidly evolving at such a breakneck speed that it is now challenging for the security experts to keep up. With each major platform change, web-based service or solution or even a newly developed system, comes a new need for security services and solutions to handle those changes. Hence, businesses must remain a step ahead to keep up with the trends. Innovative security solutions will be able to lead as there are now so many different platforms that are encompassing a wide range of devices and environments.

We have seen rapid adoption of security products. Let it be individual or businesses. And that is why; this is a popular investment option for venture capitalists. The rapid growth rate in these markets will go on continuously, as financial institutions, IT, and healthcare businesses embrace change through their technological aspects.

Crowdsourcing that is in Multiple Areas

Crowdsourcing is the process of getting funded, usually online, from a group of people. As the word is obtained by combination of the words ‘crowd’ and ‘outsourcing’; the concept behind this is to take work and outsource it to a crowd of people with particular skills.

Crowdsourcing has already expanded in a variety of areas. Waze can be given as a good example of an application which properly utilizes the power of users to enrich it with information. By offering rewards and incentives, successful crowdsourcing apps create an interesting environment, where users get enthusiastically ready to provide additional and continuous information.

Entrepreneurs will continue to remain competitive. The tendency of learning as much as possible about all the types of businesses that are getting the most buzz, will keep companies up and running.

To support innovations on a global level, the infrastructure to educate, develop, integrate, and to suggest ideas is needed.