Future of the VC Industry

January 16, 2018
Zana Nesheiwat

Insights into Investment Strategies and Opportunities

The "Future of the VC Industry" report by the Financial Policy Council provides an analysis of the trends shaping venture capital, including the rise of technology startups and the increasing role of artificial intelligence in investment decisions. The council discusses how these trends are transforming the ways in which VCs operate, from deal sourcing to exit strategies. It predicts a future where VCs will need to adapt to a more globalized market with increased competition from non-traditional investors. The report calls for VCs to embrace technological advancements and innovative funding mechanisms to stay competitive.

FROM DISNEYLAND TO VC MANOR

Imagine gallivanting across Disneyland on a sunny March afternoon as the delightfully consuming scent of a fresh batch of popcorn kernels pop to perfection. The popcorn maker sits adjacent to the churros chariot that you’ve been evading all afternoon. Yet, this isn’t any ordinary trip to The Happiest Place on Earth. You’ve arrived early, the crowds are minimal and all the rides are operational. As you approach the renowned and recently renovated Indiana Jones ride, you are astonished to find a zero-minute wait and no line. Believe it or not, your timing was impeccable – Gather the troops, the 2 ½ minute Harrison Ford-themed adventure awaits.

**HOW DOES THIS TRIP RESEMBLE THE CURRENT STATE OF THINGS FOR VCS?**

Venture capital markets survived 2016 slumps, continuing on an onward and upward trajectory through 2017. The disruptors and catalysts with the emerging technologies come out on top. Although some disparity appears among volume and funds, the game play implications are massive. While a crowd-less Disneyland is unlikely, venture capital is thanks in large part to the current landscape.

As evident of Disney purchasing rival studio 20^th Century Fox (the most significant cataclysm for the film industry in the 21^st Century), VCs too aren’t short on cash. Lines are blurred and technology is changing the game for the industry – GET IT EARLY.

HOW CAN QUALIFIED COMPANIES GAIN A COMPETITIVE EDGE, AVOID DREADED WAIT TIMES AND TAKE A PIECE OF THE PIE? (theme park visit is optional)

Top 8 hand-picked Predictions for the Venture Capital Industry in the next decade:

Technology/Big data/Automation etc. will continue driving M&A deals
Full-stack professional services a trend evident by investor acclimate
Venture funds will revive their passion for early-stage investments
“Truly Great” companies will sidestep the venture funding circus altogether
Investors receive larger stakes & are integral to the start-up team
Increased liquidity, accountability and transparency is vital
It’s a performance game folks. Personal + Professional Brand Synergy is instrumental
Innovation, experimentation and crowdfunding lead to different types of VCs

For detailed predications and insights click here.

ON THE HORIZON

In the midst of the capital market’s landscape, regulatory overhauls, and record-breaking technology M&As with no sign of reprisal, 2020 will look very different than it does today.

Then, too, there is the surging stock market and, by extension, the rebound in technology IPOs. This has been fueled not only by a strengthening economy but by President-elect Donald Trump’s push to bolster the economy further by reducing taxes, streamlining regulations and sparking major infrastructure development.

Furthermore, the implications of evolving social organizations are worth noting. The New York based think-tank, Financial Policy Council (FPC) captures this trend in a June 2017 article titled, “Financial Power of Impact Investing.” It states:

“For many years the divide between instruments of philanthropy and investing has been clear cut. Investing strategies typically did not involve social organizations focused on non-governmental organization (NGO) concerns. However, the advent of millennial investing power, the rise of social enterprises, and the need for further asset diversification have blurred the line between both industries.”

Lastly, venture is still fairly segmented by geography. As localized hubs become more sophisticated and efficient, venture will truly be a global play.

What’s your power play?

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Zana Nesheiwat is Founder of Brand ZA Inc., an integrated business solutions and impact-branding firm specializing in financial services, public policy, and technology. With global operations from Los Angeles to Dubai, the firm equips clients with intelligence and resources to effectively bridge business goals with turnkey brand strategy – driving growth across all touch points.

REFERENCES:

BLACKHAWK PARTNERS: TRACK-RECORD OF CONTRIBUTING ACCURATE PREDICTIONS. REFERENCE: JUNE 2016 ARTICLE, “WHERE ARE THE BIG BUCKS TO BE MADE IN THE FUTURE? LOOK WHERE THE WORLD IS HEADED FIRST”
FINANCIAL POLICY COUNCIL: THE LEADING FISCAL POLICY RESEARCH THINK-TANK EXCLUSIVELY FOCUSED ON ECONOMIC ISSUES ACROSS INDUSTRY IN THE US AND ABROAD. REFERENCE: FPC ABOUT US
TECH CRUNCH: COLLECTION OF RESEARCH AND ANALYSIS. REFERENCE: CURRENT AND FUTURE VC LANDSCAPE ARTICLES 2017 FISCAL YEAR
MCKINSEY & COMPANY: ACCLAIMED INVESTMENT RESEARCH AND ANALYSIS. REFERENCE: CAPITAL IQ; PITCHBOOK; MCKINSEY CENTER FOR FUTURE MOBILITY
THEGUARDIAN: NEWS AND FEATURES. REFERENCE: DECEMBER 2017 ARTICLE, CAPTAIN AMERICA VS PREDATOR: WHAT COULD THE DISNEY/FOX DEAL MEAN FOR MOVIES?

Disclaimer: This article discusses certain companies and their products or services as potential solutions. These mentions are for illustrative purposes only and should not be interpreted as endorsements or investment recommendations. All investment strategies carry inherent risks, and it is imperative that readers conduct their own independent research and seek advice from qualified investment professionals tailored to their specific financial circumstances before making any investment decisions.

The content provided here does not constitute personalized investment advice. Decisions to invest or engage with any securities or financial products mentioned in this article should only be made after consulting with a qualified financial advisor, considering your investment objectives and risk tolerance. The author assumes no responsibility for any financial losses or other consequences resulting directly or indirectly from the use of the content of this article.

As with any financial decision, thorough investigation and caution are advised before making investment decisions.