2013 Breakdown: Venture Capitalist-Style

February 21, 2013
 

By: Erin
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The venture capitalist community made a few intriguing forecasts for 2013. We are following five trends that are on track to happen as predicted.
1. Financial firms embrace innovation
David Blumberg, managing partner of Blumberg Capital, told VentureBeat that at more than 8.5 percent of the global gross domestic product, the financial industry is measured in trillions of dollars – an attractive target for IT entrepreneurs and venture capitalists. The financial services industry is running on outdated legacy systems, and Blumberg predicts the industry will embrace change in 2013.
2. B2B is sexy, for awhile
Jeff Clavier, founder and managing partner at SoftTech VC, said that in 2012, his firm did about 60 to 70 percent of its deals with B2C companies. In 2013, he predicts that ratio will flip. He is investing in B2B sales automation, SaaS for IT and other technologies some people find sub-par compared to B2C startups. He is urging startups to start friendly competitions with companies like Salesforce and IBM in 2013. On the other side of the argument, Scott Maxwell of Open Venture Partners says that this B2B bubble will burst in October.
3. Rise in acquisitions
According to the recent National Venture Capital Association's survey polling more than 600 CEOs and venture capitalists, more than half of those polled noted that there will be more startup acquisitions in 2013. On the other side, faith in IPOs is down with only 40 percent of VCs and 29 percent of CEOs stating that companies will go public in 2013.
4. Health is personalized, engaging
We often hear the word “personalization” when referring to the marketing industry, but according to Divya Nag of StartX leadership team, we will see an increase in med-tech startups set out to prevent diseases, increase health outcomes and tailor medical engagement on an individualized level. She highlights a few companies to watch this year including Morpheus Medical, Ubiome and Wellness FX.
5. The enterprise strikes back
With the lackluster consumer-facing company IPOs of 2012, Paul Kedorsky, senior fellow at the Kauffman Foundation, said it's a ripe moment for enterprise companies to bloom. With a more efficient sales model, new platforms, and an emphasis on designing products for the people who use them, venture capitalists will shift their dollars from consumer startups to enterprises this year.
Check back with us during the next few months to read about the progress of these predictions.
What venture capitalist trends are you following in 2013?

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