IVCA Feature: TEN 2018 Predictions for Venture Capital and Private Equity, As Reported by the Financial Press

IVCA Feature: TEN 2018 Predictions for Venture Capital and Private Equity, As Reported by the Financial Press

January 3, 2018

It is the NEW YEAR of 2018, and may you have a great one. 2017 was a time for small victories for the Venture Capital/Private Equity industries, as for example the new tax reform bill ended up keeping carried interest provisions largely intact. But what will 2018 bring for the VC/PE environment? As always, 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. Here are ten such articles that have appeared in the last couple of months.
 
Investopedia.com, ‘What’s in Store for Venture Capital in 2018
 
Venture Capital outlook remains upbeat despite mixed 1H:17 exit trends. In our conversations with private tech investors, a common theme emerged: The supply of money is at an all-time high. The record-high fundraising activity of the past 18 months has been driving the growing amount of dry powder. The upshot is that valuation discipline has returned to the Valley. The investment thesis has shifted from “growth at all costs” to “growth with fundamentals.”
 
READ MORE: https://www.investopedia.com/advisor-network/articles/whats-store-venture-capital-2018/ 
 
Schroders.com, ‘Outlook 2018: Private Equity’
 
The private equity fund manager universe has grown to more than 7,000 firms, consisting of buyout, VC, growth capital and turnaround focused fund managers. We expect it to continue to expand in 2018. We expect continued growth in fund sizes which, as in the past, is likely to be concentrated in about 15-20 “mega” fund managers.
READ MORE: http://www.schroders.com/en/us/institutional/insights/equities/outlook-2018-private-equity/  
 
 
BusinessInsider.com, ’50 Startups that Will Boom in 2018, According to VCs’
 
We asked [top VCs] to name a company they've backed that's on track to have a great 2018. After all, they believed in those companies so much they invested. But we also asked them to name another startup they think is cool that they don't have any financial interest in. As startup lovers, they gave us this list chock full of amazing up-and-comers creating tech for businesses, gamers, personalized health, robots, high-tech money, new forms of super computers, and even outer space.
READ MORE: http://www.businessinsider.com/50-startups-to-boom-in-2018-according-to-vcs-2017-11 
Pitchbook.com, ‘PitchBook Analyst Note: 2018 Private Equity Outlook
 
Some themes will seem familiar, having been touched upon in prior reports, while others will be lesser-known. However, after poring through the myriad factors that affect and will continue to affect PE dealmakers, the six key predictions enumerated below are what our analysts have deemed most significant for PE players in the year to come.
 
READ MORE: https://pitchbook.com/news/reports/4q-2017-pitchbook-analyst-note-2018-private-equity-outlook 
 
Forbes.com, ‘Five Midwest Industry Trends That Will Shape VC Investing in 2018
 
...the Midwest has seen considerable deal activity across states, industries, and stages... we analyze market trends to predict growth areas and opportunities for investment. Our analysis uncovered five broad industry trends we expect to shape VC investing in 2018.
READ MORE: https://www.forbes.com/sites/peterandrewwilkins/2017/11/21/5-midwest-industry-trends-that-will-shape-vc-investing-in-2018 
 
KNect365.com, ‘Three Themes That Will Shape the Private Equity Industry in 2018
 
Private equity loves disruption. The industry views itself as nimble, disruptive and opportunistic, and so well-placed to respond to disruptive trends. This is in stark contrast to trying to change the direction of the large publicly-listed company super tanker. We have identified three major ways in which technological disruption impacts private equity directly...
READ MORE: https://knect365.com/superreturn/article/72fa12d5-1302-4efa-8ed8-c3155f72dfeb/three-themes-that-will-shape-the-private-equity-industry-in-2018 
 
Forbes.com, ‘What’s Next for Tech Investing in 2018? These Experts Have Bold Predictions
 
The tech sector continues to boom with no sign of slowing, and investing is a great idea. But what’s the next big thing on which to bet the house? [We] went to some of the most lauded and experienced investors in the industry to get their low down on what’s hot, what’s not, and what’s next in tech.
READ MORE: https://www.forbes.com/sites/mnewlands/2017/12/28/whats-next-for-tech-investing-in-2018-these-experts-have-bold-predictions 
 
Deloitte.com, ‘The State of the Deal: M&A Trends 2018
 
Corporate and Private Equity executives foresee an acceleration of merger and acquisition (M&A) activity in 2018, both in the number of deals and the size of the transactions. Technology acquisition is the new No. 1 driver of M&A pursuits and dealmakers report using non-spreadsheet based M&A technology tools to help reduce conflicts, costs, and time.
READ MORE: https://www2.deloitte.com/us/en/pages/mergers-and-acquisitions/articles/ma-trends-report.html 
 
SeekingAlpha.com, ‘Where to Invest to Benefit From the Corporate Tax Cut
 
... it should be clear to everyone that some companies and sectors will benefit both absolutely and benefit relative to other companies from a lowering of the corporate Federal income tax rate. While far from a complete assessment of which companies will win and which will not (or not as much), this short article provides some insight into which companies or sectors will benefit under the GOP corporate tax plan.
READ MORE: https://seekingalpha.com/article/4131050-invest-benefit-corporate-tax-cut 
 
InvestmentNews.com, ‘How Firms Should Be Recruiting Young Talent
 
[In a seven minute podcast,] Philip Palaveev, founder and chief executive of The Ensemble Practice, describes why it's so important to build a formal succession plan, and offers tips on how to reach that goal.
LISTEN HERE: http://www.investmentnews.com/article/20171107/FREE/171109943/philip-palaveev-on-how-firms-should-be-recruiting-young-talent