8 Venture Investment Predictions that Really Stand Out in 2022

8 Venture Investment Predictions that Really Stand Out in 2022

The venture capital industry is highly dynamic and constantly evolving, but that doesn’t mean its trajectory is impossible to predict.

Certain developments are already underway, and it’s reasonable to expect they’ll continue their progression in the years ahead.

By staying on top of the latest predictions about venture investment, you can make smarter decisions within the startup space. Here are some of the trends you should expect to continue in 2022 and beyond.

The Continued Rise of Venture Capital

The venture capital industry has been booming for years, and there’s no reason to expect a sudden downturn. In a world where technological innovations can barely keep up with changing dynamics, new companies are needed to fill in the gaps.

All those companies require investment.

With so much money to be made, bold investors will continue to take risks and fund ambitious projects.

1. There Will Be More Investors Chasing After Companies

Companies in the Series A funding phase are likely to see more investors than ever before racing to provide them with funds.

That’s because these companies are in the ideal stage for investment. They’re still growing, and they’ve shown that their products are popular with consumers.

With more money chasing these types of opportunities, the cost of doing business could rise for investors. Entrepreneurs and startups, meanwhile, will benefit from the increased interest in their projects.

2. Companies Will Become More Resilient

Thanks to the coronavirus pandemic and subsequent disruptions, the last few years have been especially hectic. Companies have had to scramble to sort out their supply chains and find enough healthy workers.

Now, these same companies see future disruptions on the horizon as the effects of climate change become more impactful. To deal with all these issues, entrepreneurs and business leaders will start to make resilience a major focus.

Growth will still be the main priority, but leaders will seek a type of growth that can survive in an unpredictable economic climate.

How Technology Will Shape Venture Capital

Technological changes continue to act as a major force in the world of venture capital. Companies and consumers are all looking for ways to become more efficient, and investors will find opportunities by supporting productivity-enhancing technology.

3. Companies Will Continue to Invest in Remote Technologies

The coronavirus pandemic accelerated the inevitable trend toward remote work, and companies are now desperate to make this new model as effective as possible.

In many cases, the key to making remote work more productive lies in new technology.

Startups will continue to churn out software solutions that enhance the hybrid model, and investors will fund the projects that seem most likely to succeed. Remote work will soon become more stable and efficient, and innovative companies will profit from the technology that makes this progress possible.

4. Opportunities Will Arise Around Supporting Freelancers

Today’s workers are increasingly insistent on owning their own time and building flexibility into their routines.

This makes freelancing an especially appealing option. As workers quit their traditional jobs to go solo, they’ll need technological and logistical support.

Forward-thinking companies will step in to supply these new freelancers with the technology they need.

Demographic Changes in the Venture Capital Industry

For a long time, the world of startups and venture capital has seemed insular and even cliquey. While changes aren’t coming as quickly as most would hope, we are seeing the gates to the palace slowly squeak open. In the years ahead, you can expect the venture capital industry to become increasingly diverse.

5. Workforces Will Continue to Go Global

With remote work now entirely in vogue, the startups supported by venture capital are sure to go increasingly global with their workforces.

New technology will make it easier than ever to collaborate across continents, and companies will take advantage of their sudden access to global talent. As the workforce spreads around the globe, new companies will provide technological innovations that make cross-cultural communication more efficient.

6. The Venture Capital Industry Will Become More Diverse

Today’s venture capital industry is significantly less diverse than the American population as a whole. Most of the investors and workers are white males, and the biggest players are alumni from a handful of elite universities.

While this situation won’t change overnight, increased awareness should spur progress.

Macroeconomic Influences on Venture Capital

The world of venture capital continues to exist within a fluid and volatile global economy. Economic trends that begin outside the venture capital industry will inevitably affect how investors conduct their business.

7. The Era of Cheap Cash Will Come to an End

Inflation, caused by pandemic-related disruptions and now settling in for the long haul, will force the Federal Reserve to increase interest rates.

This, in turn, will make funds harder to come by for investors. With the venture capital industry still booming, the increased rates shouldn’t have a major dampening effect. All the same, investors should understand that money will be a little more expensive to obtain.

8. The Muddled Global Supply Chain Will Create Opportunities

The asymmetrical flurry of pandemic-related shutdowns and disruptions has wreaked havoc on global supply chains.

As a result, companies are looking to find backup sources for the goods they need. All this extra sourcing requires logistical support, and innovative technology companies can take advantage.

In the months and years ahead, expect the venture capital industry to invest heavily in software solutions that help companies acquire essential goods and supplies.

Conclusion: Exciting Times Ahead

The last few years have been turbulent, and the future is sure to bring its own disruptions. No matter what surprises 2022 has in store, innovative startups and the venture capitalists supporting them will continue to play a major role in global affairs.

As a world in flux changes its prominent working models and prepares to meet the challenges ahead, expect the venture capital industry to maintain its steady growth.