Key Venture Capital Investment Trends For 2023


Impact Investing:

As investors seek to positively shape society and the environment while generating a profit, impact investing is accelerating in popularity, addressing many dire issues like poverty, the climate, and health. Venture capitalists entering these sectors anticipate that our planet’s most pressing challenges also offer opportunities for the most substantial returns in emerging fields.

Decentralized Ventures:

COVID-19 accelerated the trend toward remote work, likely to continue into 2023 and beyond, forever changing how we connect and work. As a result, venture capitalists can be expected to invest in startups that operate partially (hybrid) or entirely online through remote work solutions, virtual events, and online education. This shift toward remote and decentralized models will also create new opportunities for startups focused on decentralized technologies via blockchain and decentralized finance (DeFi).

Deep Tech:

Startups investing in cutting-edge technologies such as artificial intelligence, blockchain, and biotechnology are primed to transform every industry as we know it. Deep tech startups often require significant capital to fund their research and development efforts but also carry the potential to generate extraordinary returns. As VCs recognize the potential for these technologies to disrupt traditional business models and create new market opportunities, analysts anticipate seeing continued investment in these spaces, despite some recent tech sector pullbacks at the start of January 2023.

This is an exciting, albeit sometimes volatile, moment for venture capitalists as entrepreneurs and innovators hone in on impact investing, remote/decentralized ventures, and deep tech startups. Venture capitalists who can identify and invest in these trends today are likely to be positioned to be the winners of tomorrow.

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