Which Technology Will Most Impact The Future Of Venture Capital? 10 Experts Share Their Insights

  • 30 June 2019
  • Sam Mire

To the average person, the world of venture capital can seem shrouded in mystery. They may wonder what, exactly, somebody who works in venture capital does. Fair question.

These industry insiders have lent us their views on the technologies shaping the future of venture capital. In doing so, they also give us a clue about what VC is all about (if you don't already know).

Here's what they have to say:

1. Michael Mildenberger, CEO of seriesOne

“The fusion of crowdfunding and blockchain technology will open up a new world of the capital formation using digital securities with participation by both institutional and main street venture capitalists. They follow the same principles and governance under existing rules as traditional VCs, but they have the added benefit that the underlying smart contract will allow
greater variety and simplicity regarding how funds are structured and exchanged.”

2. Keren Moynihan, CEO of Boss Insights

“VCs are incorporating AI in to their tech stack, to see patterns that humans can't. AI can be taught by the trajectories of thousands of companies, failed and successful, to provide greater context on the companies they fund. It means that when the warning signs start adding up, investors can step in and redirect the ship.”

3. Alex Song, CEO and Co-Founder of Innovation Department 

“The common answer these days might be Blockchain, VR, AR, or even Natural Language Processing but the truth is that there’s no single technology that will have the greatest impact. We’re in a moment of time where the confluence of all technology innovations is making the costs of starting a
business lower than ever, and that ultimately enables the creation of more startups than ever before, too. The wealth of new opportunities means that Venture Capital needs to be more disciplined in their investment decisions than was the case in the past, particularly as the size and number of funds continues to grow. There has been over $300 billion of VC money invested
since 2018, and that is only further accelerating. There will be a lot of
losers that will shake out in the next two years and when that happens a lot of companies will be left in what I’ve coined “Venture Purgatory”. The landscape will face significant challenges to meet investor expectations, and will force new rigor and discipline to be established throughout the VC industry.”

4. Dave Knox, Strategic Advisor at Predicting the Turn

“It seems obvious, but the continued rise of “social networking” will have the most dramatic impact as entrepreneurs have continued visibility for connecting with investors. AngelList, LinkedIn and other platforms create a visibility for entrepreneurs anywhere in the world to connect with potential investors vs relying on the old model of needing a “warm introduction..” This isnt a new trend but one that gains momentum every year and continues to redefine the way venture capital works.”

5. Sara Batterby, Founder of Equity Capital Collective

“The development of tools and resources that demystify investing and the huge diversity of structures that support it will crack the ivory tower of venture capital, funnel capital into alternative structures, provide multi-stakeholder returns and ultimately force venture capital to become a
niche tech-centric offering or adapt to serve a broader market with more uniform, shorter-term return scenarios. A unicorn at a100X return is really the only way venture wins on a 10-year investment horizon. That approach cannot survive as the only capital strategy serving the massive proliferation of innovation needed by our economy.”

6. Carolina Abenante, Founder of NYIAX

“Blockchain has received high interest from the capital market and financial community. The transaction information and immutability that blockchain provides works well for supply chain creation, management and control (audit). Contract management, audit and self-effectuation through Smart Contracts allows for blockchain to streamline backend processes, to track and reduce the cost of managing and auditing the supply chain and contracts. VCs find contract management as a boom to any business as it is applicable in capital market trading, banking and any area where a contract is the central point in a transaction or technology can create a disruption.”

7. Viktor Viktorov, founder of REINNO

“Blockchain is having a huge impact on the venture capital industry. ICOs and STOs remain an attractive alternative for startups, allowing them to raise more money quicker while also providing liquidity through token trading. Crowdfunding platforms are also on the rise, thanks to their ability to decrease the time and cost of early-stage financing.”

8. Oleg Gredil, Assistant Professor at the Tulane University A. B. Freeman School of Business 

“As the number of portfolio companies grow and the underlying businesses get
more complex, the challenge of how to properly measure traction and milestones becomes increasingly relevant. Thus, modern VCs stand to benefit from technologies that objective measures project or process status and changes thereof. This is important for keeping the degree of informational asymmetry between the management and investors relatively low and for writing more efficient contracts between VCs and entrepreneurs.”

9. Jessica David, Director of Marketing at SeventySix Capital

“The rollout of regulated sports betting in the United States is opening an entirely untapped market. As states rapidly legalize sports betting across the country and revenues grow, new technologies and platforms will emerge to provide fans the opportunity to further engage with their favorite teams and athletes. We believe that the sports betting industry is ripe for disruption from entrepreneurs seeking to reimagine and challenge the incumbents across the global ecosystem. New opportunities include data, analytics, media, fantasy, innovative sports books, and more.”

10. Dennis Shirshikov, Finance Specialist at Fit Small Business

“Blockchain is certainly the most spoken about technology. The reasoning here is it has the ability to be applied to almost every single industry from real estate to payment processing. This application will likely result in huge changes in the types of startups funded and the way we interpret large scale results.”

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About Sam Mire

Sam is a Market Research Analyst at Disruptor Daily. He's a trained journalist with experience in the field of disruptive technology. He’s versed in the impact that blockchain technology is having on industries of today, from healthcare to cannabis. He’s written extensively on the individuals and companies shaping the future of tech, working directly with many of them to advance their vision. Sam is known for writing work that brings value to industry professionals and the generally curious – as well as an occasional smile to the face.