Venture-backed assets are becoming more stable and less risky with 2018 approaching. Firms funding small businesses see both merger-and-acquisition activities and IPOs going up in 2018. Trends point to a prevalent investment premise where growth at all cost has shifted to growth within fundamentals.
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One concrete example is the share of wallet for self-driving cars. While the initial reaction of the industry is that this could lead to significant job losses, the current dominant perspective is that the onset of this technology will actually boost productivity as it guarantees fewer traffic accidents. It can likewise create a boom in more rural communities existing beyond the suburbs. There are many self-driving car companies now, with an increasing number of potential investors attending their presentations.
Probably the most viable venture capital trend is blockchain technology. Billions of dollars are being invested in blockchain projects like Bitcoin in 2017. This is very interesting, as even banking giants like Barclays, Credit Suisse, and HSBC are experimenting with blockchain. New cryptocurrencies and digital-currency-exchange platforms emerge daily, with Bitcoin, in particular, moving strong in the market. The blockchain market is expected to be at $20 billion by 2024.
Finally, more and more venture capitalists are looking to Asia for their investments. Even after a downward trend in the fourth quarter of 2016, venture capital investments in Asia rebounded in the first quarter of 2017. This is largely due to Chinese tech companies investing other startups outside their country. A prime example is Tencent, a company that has provided internet value-added services within China since 1998, which has this year backed up 19 startups each worth $1 billion or more.
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As an entrepreneur, investment industry veteran Gregory Lindae launched two successful investment management companies: Castlerock Capital Ventures, LLC and Sapient Asset Advisors, LLC, both in San Francisco, CA. More investment reads here.
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