The right investments: Top 6 tech venture capitalists should be eyeing in 2021

Global FundraisingBy Profit Board Last updated on Jan 9, 2021

The world continues to change in the new normal. Businesses have started on the path of recovery. Lockdowns are being lifted. Survival and sustainability has again taken up the front seat with profitability as the co-pilot. Startup funding is back on the rise and venture capitalists funding a slow down cycle is witnessing a revival. Sectors like e-health, fintech, SAAS, OTT, social commerce, e-commerce, edtech, consumer tech, online gaming, have emerged as royalties.

 

Renewed interest in early stage startups

Early stage startups are in a very critical juncture at this point. Many of our VC partners noticed an outlook change among early stage startups. The pandemic hit has made them more prudent, made them realise the importance of profitability and financial management. This, in turn, has led to the emergence of market ready, innovative early stage startups. In a report by Venture Intelligence, it was found that the August – October period witnessed a major surge in the early stage funding with $323 million across 101 deals.

Even among early stage sectors, deep tech, tech IP/innovation e-health, fintech, SAAS, OTT, social commerce, e-commerce, edtech, consumer tech , online gaming, have emerged as winners. Here are our best bets that are likely to gain a lot of VC attention in 2021:

 

Medtech

Medical technology (MedTech) includes hospital equipment,surgical tools ,implants, software, and various other kinds of life-saving and life-enhancing technologies. The MedTech industry in India is estimated to be Rs50-70,000 crore, growing at 15% annually, and is expected to reach Rs.150,000 crores by 2025. Globally, the sector is also growing, from $500 billion today, to an expected $600 billion by 2025, according to reports.

The onset of the pandemic forced this sector to evolve even more rapidly. This is one sector that cannot evolve without government motivation. The GoI has recognized this need and has been doing a lot to boost this sector. The ‘Make in India’ movement, for example. Certain crucial medical devices that were earlier imported are now being manufactured in India, ensuring affordable and easy procurement of components.

BIRAC, the funding wing of the Department of Biotechnology, has provided grants to over a hundred MedTech projects. STPI has also launched six centers of excellence (CoEs) in emerging technologies and 10-15 more CoEs are in the pipeline.

These CoEs will focus on new age technologies including artificial intelligence, machine learning, data analytics, autonomous connected electric shared (ACES) mobility, block chain, VR/AR, fintech, medtech, agritech among others. Through these centers, STPI shall act as single-window facilitation centres to extend requisite lab support, funding and mentoring to startups.

VC interest in the sector has been slowly increasing and we believe that given the situation, this sector can provide a high ROI to VCs.

 

Alok Patnia, our Managing Partner shares his opinion on this. Read the full article on: Hindustan Times

 

 

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