Five key tech sectors will enjoy a combined growth of more than 400% over the next five years, according to – SymbianOne

Posted: July 7, 2021 at 3:07 pm

Five key tech sectors will enjoy a combined growth of more than 400% over the next five years, according to market reports.

These innovation pacesetters nanotechnology, AI, Digital Twins, genomics and other biotech life sciences attracted a combined $892.63 billion of investment in 2020, set to rocket to $2.44 trillion by 2025.

Paul Stannard, Chairman of the Vector Innovation Fund (VIF) an international alternative investment vehicle for advancing enabling technologies globally said:

These top five tech growth sectors are the ones currently lighting up investment opportunities, and we have specifically aligned our investment pipeline to them. They hold the key to solving major global challenges relating to sustainability, healthcare, energy, food resources and equal and fair distribution of innovation worldwide.

Most tech sectors are growing, but these game-changers attracting that $2+ trillion investment wont be companies enhancing things that already exist, like simply making your TV screen sharper.

We are backing tech companies that transform how we deal with healthcare and future pandemics, sustainable clean energy, food production and combine these opportunities with AI and machine learning.

Our funds first key target is health tech, which has enjoyed record levels of investment in the wake of COVID, so we would focus on potential nanomedicine breakthroughs such as reversing degenerative diseases and cancers or creating a multi-vaccine to protect us from a range of diseases.

And while funds like ours can supply management expertise, our target companies are also those showing the skill to commercialise and monetise their offering to a willing market.

What we have seen with the pandemic as well as Climate Change is a global realisation that we must also accelerate investment in enabling technologies supporting environmental, social & corporate governance (ESG) and the UNs Sustainable Development Goals (SDG) principles where impact can deliver better outcomes for everyone.

The Top Five tech growth sectors highlighted by market reports are:

AI is transforming future healthcare, food, energy, transport, construction, aviation, and many other sectors. Combining AI with nanotechnologies, for instance, allows platform technologies to re-invent the industries over this decade.

According to data gathered by StockApps.com, in the last quarter of 2020, there was a massive surge in investment in AI technology companies totalling $73.4 billion, which was a $15 billion increase on the start of 2020. In the first half of 2021, we have seen 4,080 investment deals in AI technology companies, according to the investment monitoring platform Pitchbook. The average investment deal flow value has increased nearly three-fold in 2020.

According to the investment monitoring platform, Pitchbook, in 2020, $5.56 billion was invested in nanotechnology companies. In the first half of 2021, there has already been $7.72 billion of investment in nanotechnology companies, from 775 deals, with the average deal size value increasing three-fold in just the last six months.

Paul Sheedy, a co-founder of the World Nano Foundation (WNF), said: The COVID pandemic is fuelling an investment trend behind the nanoscale tech that is already being billed as the COVID Decade and driven by the fear of human and economic devastation from another pandemic.

And that risk is high: there are only ten clinically approved solutions to over 220 viruses known to affect humans, and we can expect at least two new viruses to spill from their natural hosts into humans annually, but nanotech and biotech can help counter this threat.

According to Nature magazine, global biotech funding in 2020 had its best year ever: 73 life science firms alone raised a collective $22 billion. Private fund-raising also mushroomed by 37% on the previous year already a stellar year. This is being further fuelled with the COVID-19 mitigation market and the advent of a surge of investment in pandemic protection and preparedness using multi vaccines, autoimmune treatments and early intervention testing. Pitchbook has recorded 3,800 deals in biotechnology companies in the first half of 2021, totalling $34.48 billion in investment in these companies. Again, the average investment level is nearly three times what it was the previous year, and post valuations of invested biotech companies have doubled from 2020.

According to Pitchbook, last year, there was $103.8 million of capital invested from just 53 investors into the Digital Twins technology start-ups. One company, Cityzenith, has added over 5000 new investors in the last 18 months, raising $10 million to date.

Cityzenith uses its Digital TwinSmartWorldProOS software platform to enable architects, planners, and energy providers to track, manage, and reduce emissions and energy waste from individual buildings, infrastructure, and even whole cities and has just reported major contract wins and seen its share price rocket 161% in early 2021. The company is partway through a $15 million Regulation A+ investment raise to scale up its international commercial opportunities.

The Digital Twin sector is an interesting space with tremendous growth opportunities for nimble, fast-moving start-ups who have the opportunity to compete with major conglomerates in this dynamic field such as Microsoft, Siemens, Phillips and Bentley.

According to Pitchbook, investment capital in genomics companies has more than doubled in value per deal in 2021 over the previous year. So far in 2021, post-investment valuations have also more than doubled against the whole of 2020.

Paul Stannard added: The accelerated innovation since the COVID-19 pandemic is astonishing some experts say we witnessed ten years growth in the last 18 months of the outbreak giving us a glimpse of even greater possibilities, especially when some of these pacesetters, such as nanotech, genomics and Digital Twins are able to advance, accelerate and complement each other.

If it is backed by astute and enlightened investment, our future is looking bright!

The World Nano Foundationis a not-for-profit membership organisation with 75,000 subscribers and users in 40 countries working on international commercialisation of nanoscale technologies in 16 industry sectors and collaborates with a wide variety of partners, maximising support and funding bringing advanced technology to the world and commerce. This is supported by many industries and academic groups developing and creating a legacy for enabling technology innovation.

Vector Innovation Fund (VIF)is a Reserved Alternative Investment Fund (RAIF) specialising in support for technology companies able to transform and protect global markets, notably in global healthcare, enabling technology, sustainability, and longevity aligned to the UNs SDG principles. VIFs first sub-fund focuses on Pandemic Protection, and preparedness for future healthcare technology. This fund structure is domiciled in the world-renowned Luxembourg jurisdiction, and is only open to international accredited and professional investors, such as family offices, UHNW, private placement investors, pension funds, international banks, ESG investors and sovereign wealth funds. The General Partners have an excellent track record in industry, healthcare, technology and investment, with 21 exits and a total value creation of $2.4billion, including two successful IPOs.

Cityzenithis based in Chicago with offices in London and New Delhi. The companys SmartWorldOS Digital Twin platform was created for anyone designing, constructing, and managing complex, large-scale building projects, properties, and real estate portfolios but has developed to cover infrastructure, energy projects, transport, health, people movements, and whole cities.

PitchBookis a financial data monitoring company with offices in London, New York, San Francisco and Seattle. Serving clients in 19 languages, providing thousands of global business professionals with comprehensive data on the private and public markets to help them discover and execute opportunities with confidence.

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Five key tech sectors will enjoy a combined growth of more than 400% over the next five years, according to - SymbianOne

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