2022 Investment Trends
Written by Cindy Sideris, Senior Platform Manager at 43North
You’ve probably heard the terms crypto, web3, NFT, or femtech, but what do they actually mean? Should you care? Are you missing out on investment opportunities? We’re here to clear things up and let you know what’s trending in the venture capital space.
We’ve put this information together with help from our friends Pete Cimino, Co-Founder of Lloyd, Jon Ebel, Co-Founder and CTO of Verivend, Courtney Caldwell, Co-Founder and COO of ShearShare, and Kevin Siskar and Shannon McCabe from 43North. You can view the full presentation here.
Climate
To avoid the most catastrophic effects of global warming, we need to reduce carbon pollution as fast as possible by phasing out fossil fuels, adopting clean energy, and switching to public transit or electric vehicles.
This area of funding is growing as current and younger generations see it as a necessity due to global warming proving a serious threat. Younger consumers, like GenZ, are increasingly focused on their carbon footprint and the sustainability of the goods and services they consume.
Companies like Beyond Meat, Tesla, Carbon, Redwood Materials, and even Top Seedz are all working to better their industries… and the world… through their various industries.
Web3, Crypto, and NFTs
The metaverse is slowly taking over… so buckle up! Web3 is the next wave of the internet, and it’s bringing with it a decentralized digital world. Barriers to entry have lessened dramatically, allowing anyone to be a consumer or creator with the emergence of global mining networks and decentralized computing protocols like Ethereum (hello, NFTs!)
The global crypto and blockchain market is estimated at around $7B for 2022 with projections to reach $70B by 2027, according to Pitchbook data. There are almost 20,000 cryptocurrencies and over 500 exchanges. Access to crypto has never been easier, regulatory clarity means more fiat onramps, and savings/retirement account options are now available.
The NFT (non-fungible token) market is continuing to grow, with new funds continuing to enter the space. Some of the most famous NFTs are Bored Ape Yacht Club and CryptoPunks. NFTs allow for ownership of digital art assets, and the creation of decentralized autonomous organizations (DAOs – like ConstitutionDAO). NFTs are going mainstream and permeating all aspects of culture, with companies like Adidas, Nike, and Dolce & Gabbana getting in on the game.
FinTech
The FinTech market size opportunity was estimated at $112.5B in 2021 and forecast to be $332.5B by 2028. FinTech encompasses many areas that are continually changing, including the digitization of currency, tokenization, and the decentralization of currencies as mentioned above. Notable companies growing in the space include Stripe, Chime, Coinbase, Cashapp, and our very own Verivend.
Future of Work
The future of work is constantly changing and evolving, especially as a result of the COVID pandemic. It’s the future of how work, workers, and workplaces will operate and evolve. Many companies are having to pivot, and many new entrants are solving past problems in innovative new ways with the use of AI, verticalized SaaS, automation, and workplace design. The future of work will have an effect on most companies and workers – and in order to attract and retain the best workers, workplaces are re-evaluating their operations.
New companies are also entering the space constantly, with notable companies including loom, Notion, Discord, and our very own ShearShare which is disrupting the beauty and barbering industry.
FemTech
FemTech is a term that was coined in 2016, and is a label that is constantly being re-evaluated. There are multiple white spaces in this female-focused health category, including improving care delivery, enabling self-care, improving diagnoses, addressing stigmatized areas, and delivering culturally sensitive and tailored care.
All of that said, how can we do more to highlight the overlapping experiences of other marginalized communities? While this term and market opportunity is shedding light on the lack of specialized companies and care for women, it does not include many other communities such as those who identify as non-binary. Notable and new companies in the space include Meet You, Progyny, Maven Clinic, Minerva, Aunt Flo, and Noula.
As 43North hunts for our Y8 cohort, we’re curious to see how many of our 2022 applicants are jumping on these trends and disrupting their respective industries.
