Investing is, without a doubt, one of the most effective strategies to preserve and create assets in the modern age.
However, what one chooses to invest in must be carefully considered and taken advantage of today's best startup trends.
This article shows seven investment trends to watch out for in 2022, together with several startups under its industry.
Seven Investment Trends To Watch Out For
Here are seven investment trends to watch out for, so you don't miss out on a piece of the action!
1. Digital technology
According to Tech Nation, the UK's digital technology sector is growing six times higher than any other industry in the country.
In its 2020 report, the UK is the top scaling tech nation in Europe, with a quarter of European high-investment cities located there. UK investment is currently exceeding that of Germany, and France combined for 2019. UK companies also received a third of the £30.4 billion investment raised by European tech companies in 2019.
And this 2021, despite a challenging year, technology and the UK tech sector have played a significant part in assisting the UK in adapting to the pandemic's effects while also supporting economic growth and employment.
In 2022, Covid-19 will continue to impact us in many ways, seeing an accelerated rate of digitisation and the virtualisation of business and society.
Here are examples of startups within the digital technology industry:
PPC Protect is an automated software that detects click fraud in online pay-per-click advertising campaigns.
Founded in 2016 by Neil Andrew, Segev Hochberg, and Alexander Winston, it allows marketers to see what they're paying for by opening the black box of paid acquisition.
Founded in 2017 by Roy Azoulay, any photo or video recorded on any Serelay mobile product can be authenticated in under 30 seconds.
Using real-time third-party datasets as well as proprietary anomaly detection algorithms, Serelay tells you whether as little as one pixel or frame has changed, whether the photo is of a valid 3D event, and confirms time and location readings.
Owned by partners Jacopo Lai, Michele Lacerenza, and Alessandro Canella, Kool Group Ltd. is based in London and has a satellite office in India.
Kool Stories is a social learning platform that focuses on microlearning via know-how videos and audio content. Its objective is to simplify learning. Its vision is to provide users with valuable bite-sized educational content that enables intelligent knowledge sharing, networking, and community building.
2. e-Commerce Fulfilment
Although worldwide e-commerce growth will slow before picking up in 2022, e-commerce sales are at an all-time high following the pandemic, which sped years of growth in only weeks.
The COVID-19 pandemic has boosted many small and medium-sized businesses (SMBs), as customers have shifted to home delivery and have "digitised" their lives to a larger level. This means that the increase in e-commerce sales is causing a surge in warehousing and shipping.
Here are examples of startups within the e-commerce fulfilment industry:
Founded by Gareth Burns, Jack Williams, Kevan Michael Bishonden and Louise McCabe in 2016, Selazar provides effective eCommerce fulfilment operations, saving you time and money.
It calculates how much it will cost you based on the amount of time and space you utilise. There are no hidden fees, and its billing system lets you view every stage of the process in detail, making it easier to help plan for your future.
TopCar's mission is to reinvent the consumer journey and establish the standard for an authentic, all-digital car marketplace.
Since most consumers are familiar with ordering and obtaining items online, TopCar wants to provide the same simplicity for acquiring cars using the same means by offering a seamless trip from vehicle browsing through at-home delivery.
H20 is a next-generation neobank that focuses on cashback as a competitive advantage.
Serving as a bank, a community, and a marketplace, H20 offers its customers the chance to earn cashback that they can use in any way they wish. It aims to continue its growth with many top retail executives wanting to have apps ready for their customers to use and interact with.
Driven by innovation and the COVID-19 pandemic, 2020 was a record-breaking year for investment in UK biotech.
According to the UK BioIndustry Association (BIA) and Clarivate PLC, investment in UK biotech has increased by more than 1000% since 2012. UK biotech companies raised a record £2.8 billion in equity finance in 2020.
And 2021 proves to be another record-breaking year for UK biotech investment as investors see returns from the maturing sector.
More than £830m in new capital was raised in the three months leading up to the end of February, almost topping the £894 million raised in the first six months of 2020.
Global investors continue to recognise the great potential of UK science, with both public and private companies securing significant investments to fund their R&D programmes and speed up the delivery of new medicines to patients.
Here are examples of startups within the biotech industry:
Founded in 2002 by Simon Yaxley and Tim Carden, Premier Research is a biotech startup that assists biopharmaceutical and medical device firms in bringing their developments. Its in-depth, focused expertise targets the therapeutic areas and indications where today's biotech and speciality pharma pioneers are making the most incredible progress.
Premier Research is dedicated to assisting customers in answering patients' unmet needs with a broad spectrum of medical issues. Their specialised global task forces are committed to smart study optimisation and risk management throughout the trial to assist drug development initiatives.
ZOE is a health science company that uses data to help people sustainably adjust their nutrition. Users are sent a kit and asked to provide a stool sample, use a continuous glucose monitor and do a finger-prick blood test to gain insights into their gut microbes, blood sugar and blood fat.
ZOE employs the most advanced tests and cutting-edge science to help understand how your body works so you can naturally reduce dietary inflammation and improve your gut health naturally.
4. Machine learning and AI
Recently, the UK government unveiled its 10-year plan to transform the country into a global "artificial intelligence superpower," intending to compete with the US and China.
The "National Artificial Intelligence Strategy" aims to increase the application of AI in British businesses, attract worldwide investment into AI firms, and create the next generation of domestic tech talent.
The UK's challenge now is to fully harness the potential of AI and data-driven technologies, build on early leadership and legacy, and anticipate the next decade's opportunities.
Here are examples of startups within the machine learning and AI industry:
Founded by David Excell and Bill Fitzgerald in 2008, Featurespace has developed analytics and AI software to profile online client activity and predict future individual behaviour.
Featurespace also aims to prevent and intercept online fraud in real-time and optimise marketing conversions. The company's primary technology is Adaptive Behaviour Analytics, a platform that can tell the difference between real clients and fake ones.
Founded in 2016 by Barnaby Hussey-yeo, Cleo is a developer of an app and chatbot designed as a financial assistant.
Cleo AI assists people with their finances. It provides excellent financial knowledge and suggests products that can help them increase their saving capacity through chat.
Founded by Stephen Mallik in 2019, Arrivu develops digital marketing solutions that use patented Voice/AI technology and the Arrivu Platform.
iStory, their first product, combines voice/AI, rich media (video, music), and analytics to let marketers produce engaging, interactive voice-activated content at a low cost. In just a few hours, anyone can construct a dynamic, non-linear story. It's also easy to modify and personalise the content.
Founded by Julien Grossmann and David Costa Faidella, the reKnowledge analytics platform is designed to streamline complex investigations, including intelligence, cyber, and fraud. It allows domain specialists to acquire evidence quickly and easily and explore and query their body of evidence using an interactive analytical workbench.
While the initial objective of reKnowledge is to simplify research and save money for their clients, the long-term ambition for reKnowledge is much more ambitious. They've laid the groundwork for a significant shift in how knowledge is created, maintained, and used to influence decision-making with their platform.
By giving their clients the capacity to create a data-driven situational awareness, they will inform better and support the decision-makers they work for. reKnowledge will, in the end, give its users a significant advantage in managing and utilising knowledge, whether for business, activism, or national security.
5. Renewable energy, Sustainability
The repercussions of climate change are already having an impact around the world. The need to reduce or reverse the still-increasing quantities of carbon dioxide and methane in the atmosphere and address the already-observed effects of climate change creates an excellent opportunity for entrepreneurs to create businesses around.
Fortunately, the UK is leading the world in climate tech startups, with a 60% increase in the number of startups in this field since last year.
Here are examples of startups within the renewable energy and sustainability industry:
Founded in 2017 by Sarah Merrick, Ripple is a London-based energy tech startup. It allows individuals and businesses to own a piece of large-scale wind farms and have the low-cost, environmentally friendly electricity they generate distributed to them via the grid via utility partners.
Ripple is the UK's first clean energy ownership platform, making fractional wind farm ownership and supply affordable and straightforward. Its goal is to make clean energy ownership affordable and accessible to the general public.
Xampla is a spin-out that creates natural plastic alternatives founded in 2018, by Simon Hombersley.
Xampla is the world leader in commercial plant protein applications. Its next-generation material is similar to synthetic polymers in function, yet it decomposes entirely and naturally without harming the environment. Their goal is to replace single-use plastics like sachets, flexible packaging films, and less visible plastics like microplastics present in liquids and creams.
In 2015, Andercon Caicedo and Paula Alcalde founded GreenBay, a plant-based omnichannel grocery retailer.
GreenBay makes it simple, enjoyable, and convenient for people to try a plant-based lifestyle by connecting consumers to new and emerging companies that help the environment, promote a more sustainable food system for all, and combat climate change.
Looped is a circular platform that promotes and connects upcycled designers with brands, resources, and partners to provide a new perspective on the industry.
Looped aims to transform how the fashion industry thinks about waste and consumes it by recycling or repurposing current materials and clothes to reduce textile waste.
6. Blockchain Technology
Britain can become a world leader in the digital and cryptocurrency ecosystem within the next few years, according to £500 million worth of investments into UK blockchain startups made in 2017-18.
This 2021, the UK's Blockchain innovation and investment ecosystem is becoming a magnet for entrepreneurial finance, with investor confidence in the UK and London-based blockchain entrepreneurship high and expanding.
As Europe's financial centre, London is now developing a new financial ecosystem and cutting-edge blockchain adoption while receiving most financing and serving as the headquarters for most UK blockchain companies.
And with all the required resources and the industrial and governmental will, the UK will become a global hub for blockchain technology by 2022.
Here are examples of startups within the blockchain technology industry:
Founded by Adam Joyce, James Smith, Tom Robinson in 2013, Elliptic is a London-based startup that offers blockchain analytics, certifications, regulatory compliance, and financial management services.
Elliptic started as a simple bitcoin storage service that held bitcoin private keys, protecting them from theft and hacking. Over time, it grew into a full-fledged blockchain analysis company, working with some of the world's major financial institutions to protect them against cryptocurrency-related financial crime.
Travala is a blockchain-based travel booking platform founded by Juan Otero, Matthew Luczynski and Steven Hipwell in 2017. It lets customers book over 3 million travel products around the world with popular cryptocurrencies.
Travala aims to align travel booking with decentralised technology, promoting accessibility for its users and censorship-resistant peer-to-peer transactions. It currently offers more than 2,200,000 properties in 90,124 travel destinations in 230 countries, with prices up to 40% lower than those provided by other major travel booking platforms.
7. Augmented Reality and Virtual Reality
Augmented reality (AR) and Virtual reality (VR) have been promoted for decades without persuading most businesses of their usefulness. Still, the technology is beginning to prove it can be put to practical use.
Research and Markets predict that the market for VR and AR will expand from $7.9 billion in 2018 to $44.7 billion by 2024, thanks to advancements in technology, increasing evidence of its benefits, and the growing availability of affordable head-mounted displays (HMD).
Here are examples of startups within the augmented reality and virtual reality industry:
FundamentalVR provides a virtual reality-based medical education platform founded by Chris Scattergood and Richard Vincent in 2012.
Their platform, Fundamental Surgery, is the market-leading medical education platform, enabling multimodal simulation and teaching across tethered and all-in-one VR, mixed reality, and mobile utilising the latest AI techniques.
It is the only global platform to receive educational certification from prestigious medical institutions such as the American Academy of Orthopaedic Surgeons and the Royal College of Surgeons of England.
Improbable is a British technology startup that creates and enables virtual worlds.
Founded in 2012 by Peter Lipka, Herman Narula, and Rob Whitehead, Improbable makes networked simulation software for video games and businesses.
The company has developed "SpatialOS", which is a cloud-based computing platform. Game creators can use the platform to create, run, and manage online games. It allows developers to write code using any simulation software and distribute their code across multiple machines. And in addition to gaming, the company has developed applications for defence, energy, city efficiency, health, and finance.
Investing in startups is a way for investors to expand their portfolios and also generate passive income.
And although it has risks, investing has extraordinary potential rewards and is worth looking into.
If you're looking for a new initiative, product or service and determining which startups have the potential, you can make an appointment and consult with us today.
At TrendScout, we're always looking for the next opportunity. Our team is driven to find the startup that will be on everyone's lips in 1, 5 or 10 years. Our team of consultants examines a portfolio of startups for each investment, narrowing down the search for high-potential and high-growth opportunities.
Rest assured that with Trendscout, we'll represent you and your goals equally and responsibly.