Meta: What trends have we seen emerge for venture capital in 2020? We took a closer look at three of them here to find out more about how they could affect investors. As with other aspects of business, you will find that venture capitalism is affected by certain factors in the wider industries. This causes certain trends to arise and take hold, some of which might be permanent innovations and others just small changes. Here are some of the trends we have seen arising in venture capitalism in 2020.
Aiming for the Long Game
Venture capitalism is not for someone looking for a quick investment and then an even faster return. Anyone wanting to look into this form of investing needs to be prepared to sit back on a time frame that could stretch as far as a decade. The most successful companies are going to need this time to properly grow, and you cannot expect them to rush in this time. As a result, it is important that anyone going into venture capitalism fully understands that it is going to take a while to see any kind of result, and there is going to be a lot of ups and downs to navigate along the way.
Don�t Chase Themes
When a new concept hits the market, there is always going to be a rush of copycats and imitators attempting to put their own stamp upon the brand too. However, getting involved with these copycats might not be the right move for investors as the trend will have already moved on.
Instead, finding unique and interesting ventures is always going to be a good opportunity to chase down. For example, companies like Kohli Ventures focus on programs and companies with the potential to help humanity as a whole. Meanwhile, IQ Capital Fund is always on the lookout for the next leader in deeptech and other scientific areas. Looking for these key areas where the next big change could emerge from should be a must for all investors.
Seed Investment is Separate
Whereas it was once one of the many disciplines within venture capitalism, seed investment has now grown to become its own separate class that is very different from what is on offer from other areas. Many new venture firms are setting themselves up to have a department for or to deal exclusively with seed investment.
As a result, any investor wishing to enter this area needs to have experience and knowledge in this speciality. There are several nuances to making deals in the seed investment sector, and an investor has to know how to tread properly. Undertake the right training, and be sure to understand everything fully before opting for it.
Venture capital might not be the easiest market to break into, but there are some real scopes for interesting investments and plenty to get involved with. Anyone who wishes to get started would do well to take advice from the above points and do their own further research to fully ensure that they are ready to get started. With so many opportunities awaiting in the world of venture capitalist funding, you need to know where you can dive in!
