We all know about the big ones: investments in AI, cloud computing, sustainable tech, robotics and IoTs continue to grow. But as we prepare for LEAP 2024, we’re noticing new trends in tech investments that are coming up in conversation more frequently – so we thought we’d share them with you.
Before we get into it, we first want to be clear that across all emerging investment trends, talent is critical. Recent research by McKinsey Technology Council highlights the importance of talent “as a key source in developing a competitive edge” for all tech companies and sectors – with a lack of talent being a top challenge that’s restricting growth.
So companies across sectors are working to stay on top of the tech talent market, ensuring they offer a strong value proposition to the professionals they seek to hire and retain. Every time we talk to a dedicated tech VC investor, they tell us that the team and talent behind a startup are as important (if not more important) than the products and services themselves.
As Daniel Bernard (Sports Industry Investor) said on the LEAP:IN podcast:
“You cannot compensate for the wrong people with fantastic technology or great process – it just will not work.”
So no matter what sector you’re working or investing in, we expect to see talent remain a top priority in tech and technology investments.
That being said, here are some of the new trends in tech investments in 2023.
Interoperability and combinatorial trends
Referring to the ability of a software platform to communicate and share data and information, investment in interoperability solutions is growing. More and more, businesses need to create seamless experiences for their users and customers – by connecting different platforms and data sets to minimise friction.
Along the same lines, businesses are increasingly looking at how different technologies can not only interact and share data, but work together to create new services and possibilities. This approach is known as ‘combinatorial trends’ – and it needs strategic investment and a visionary understanding of how different technologies have the potential to join forces.
It may not be glamorous – but technology that improves effectiveness and efficiency in the insurance industry is emerging as a key area for fintech investment.
Globally, the insurtech market size is expected to reach USD $146.43 billion by 2030, growing at a significant CAGR of 50.78%. And at a recent event hosted by Morgan Stanley, investors noted that investments in insurtech solutions are expected to grow as more insurance companies work to streamline their operations, and meet customer demand for new products and services.
Because it’s still at such an early stage in terms of commercialisation, quantum computing isn’t top of most investors’ lists when it comes to expanding their portfolios. But investments in quantum computing research are growing. According to Fortune Business Insights, the global market is expected to grow from $928.8 million in 2023 to $6.5 billion by 2030 – that’s a CAGR of 32.1%.
It’s widely considered a risky area for investment, but investors who are focused on growth and have a strong tolerance for risk are increasingly turning their attention to this sector.
Superapps combine the features of an app, a digital platform, and a wider ecosystem into one convenient tech package. It’s a mobile or web application that provides multiple services, usually including payment and transaction processing – acting as a self-contained commerce and communication tool that weaves together different aspects of social and consumer needs.
In this overview from Gartner, the superapp is likened to a Swiss army knife – consisting of “a range of component tools (miniapps) that the user can use and remove as needed.”
So superapps can replace the need for a user to have lots of different apps, consolidating all their functions in one place. Gartner predicts that more than 50% of the world's population will be active daily users of superapps by 2027.
The global superapps market size was valued at $61.30 billion in 2022, and it’s expected to grow at a CAGR of 27.8% until 2030 – driven by increasing internet and smartphone penetration, and new focus from investors.
How can you keep up to date with tech investment trends?
Among the best ways to keep your eye on the latest developments in tech investment trends are:
- Attending conferences and events. Yep – we do mean LEAP. It’s the place where tech industry leaders and top investors share their latest research, product releases, and investment opportunities. LEAP 2023 generated USD $11 billion worth of business, and the investor faculty of $2 trillion worth of assets under management surpassed any other investor faculty.
- Engaging with industry experts. Connect with the leading experts, VCs, and entrepreneurs in your space – to gain first-hand insights into emerging and upcoming investment trends.
- Building relationships and launching partnerships with startups and incubators. Partnerships and strategic relationships can give you access to emerging technologies before the rest of the world knows about them – and if you’re an entrepreneur, incubators provide valuable investment opportunities. These relationships also create the possibility of influencing emerging trends, so you can shape the future of tech – instead of just reacting to trends as they happen.
Register now to attend LEAP 2024. We can’t wait to see you there.