|IVCA Feature: Ten 2017 Predictions for Venture Capital and Private Equity, As Reported by the Financial Press|
January 4, 2017
It is the NEW YEAR of 2017, and may you have a great one. Predictions and prognostications are ripe this time of the year – as reported in the business press and financial websites – and the pundits are weighing in on the upcoming four quarters in the Venture Capital and Private Equity industries. Here are ten such articles that have appeared in the last couple of months.
VentureBeat.com, ‘What top Silicon Valley investors expect in 2017’
The year 2016 was an interesting one for startups. Between high valuations and the glory of reaching unicorn status, entrepreneurs have been frenetically chasing private investors — who were more than willing to deliver the cash — and thereby delayed their entry onto the public market. Yet there was significantly less VC funding than in 2015.
ThinkAdvisor.com, ‘10 Analysts’ Predictions for Private Equity, Venture Capital and M&A in 2017’
The private equity and venture capital sectors face a lot of questions in 2017 as they come off a year marked by huge fundraising even as dry powder continued to pile up. Among them, will all that money prompt fund managers to loosen their disciplined approach to investment as they try to put their money to work?
Pitchbook.com, ‘VC, PE and M&A...Bold Predictions for 2017’
My take, the cream will rise to the top and prove that these companies are for real and capable of generating vast investment returns for the bold. But we will also see more than a few go the other way, leading the investment community to rethink and better target in the future the right companies take into “Unicorn Land.”
Forbes.com, ‘Two Trends That Are Transforming Venture Capital’
There are two macro trends occuring within venture capital (VC) which are combining to have a transformative impact. As has been noted repeatedly over the past several years, the VC landscape has morphed into a barbell structure, with lots of small funds on one end and a handful of large, megafunds on the other, with few moderate-sized funds in between.
TechCrunch.com, ‘2017 Will Be a Strong Year for Venture Capital’
What does my crystal ball say about the outlook for venture capital in 2017? The building blocks of a better year are in place. Many venture capital firms are flush with cash, startup valuations have become more reasonable, technology industry M&A is robust and the technology IPO market is improving. Moreover, the obsession of funding unicorns at almost any price — and at the expense of smaller startups — has materially waned. All good news.
CloudNavatar.com, ‘In 2017, Private Equity Faces its Greatest Test Yet’
...At the same time that cash is flooding into the sector private equity deals are getting smaller. Deals under the $25 million mark accounted for nearly half of activity thus far in 2016, representing the highest proportion since 2009. Observers chalk this up to a number of reasons, including rich stock prices and increased regulatory scrutiny, but our guess is that private equity firms are seeing better opportunity for returns at the smaller end of the market, where greater growth and operational wins are to be had.
NVCA.org, ‘The Impact of the 2016 Election on the Entrepreneurial Ecosystem’
The core discussion with our members focused on specific policies that could impact the entrepreneurial ecosystem in the coming years, all of which the NVCA team will be closely monitoring. These issues include tax reform and carried interest, immigration, qualified small business stock rules, net neutrality, wireless spectrum, capital markets, drug pricing, and data and privacy regulation.
Forbes.com, ‘Trends in Tech Investing 2017’
From VR gaming to manual labor automation, the innovations in these sectors won’t necessarily revolutionize the world, but they will make incredible tech available to the general public. With so many consumers in line to purchase new technology, even a cautious outlook won’t frighten tech investors away from taking big risks for big rewards.
MedCityNews.com, ‘What’s the Health Tech investment and M&A Outlook in 2017?’
We expect technology-enabled services that help keep patients out of hospitals to represent attractive targets for investment and M&A as they expose new models for primary care and patient engagement. Outcomes and analytics will layer on top of the service models to create what investors hope will be a path to Healthcare 3.0. The self-insured employer will benefit here as they adopt more patient-centric models from firms like Vera Whole Health, a local favorite, and Iora Health.
Forbes.com, ‘Talent, Business and HR Predictions for 2017’
This year, perhaps like never before, I see a set of technology, workforce, and business changes pointing to a clear direction for the future. We are rebuilding companies into “digital organizations,” businesses that empower people to use their skills and leverage their best capabilities, breaking down the traditional “job description” and upward career model, using data and culture as tools to build alignment and coordination.