As we enter 2023, there are several industries that private market investors may want to keep an eye on. These industries may be poised for growth and could provide investors with opportunities.
Artificial Intelligence/Machine Learning
First and foremost, the technology sector is projected to continue to be an area of interest in 2023, specifically artificial intelligence and machine learning. As the world becomes increasingly digital, there is a growing demand for new technologies and innovations that can help businesses and individuals stay connected and efficient. Advancements in these areas have already had a huge impact on the way we live and work, and these technologies could become more widespread and influential in the coming year. Artificial intelligence is being used and created for industries such as healthcare, finance, and transportation, and companies that are leading the charge in this space may see potential opportunities for growth.FinTech
Similar to artificial intelligence and machine learning, the growth of the FinTech industry could be driven by factors such as the increasing adoption of digital technologies. In addition, the growing demand for convenient and efficient financial services and the increasing importance of financial inclusion could be ideas to keep an eye on as we head into 2023.
ClimateTech
Another area of the private market that may be worth watching in 2023 is the renewable energy sector, such as solar panels and wind turbines. As concerns about climate change continue to grow, there is expected to be increasing demand for clean, renewable energy sources. This demand is helping drive innovation in the renewable energy space and interest in companies working on cutting-edge renewable energy technologies could be an option in 2023. As governments and businesses around the world look to reduce their carbon emissions and transition to a more sustainable future, the demand for clean energy technologies is expected to grow, for example you could see companies developing hydrogen fuel cells and carbon capture technologies . According to PitchBook data, venture capital funding to carbon & emissions tech in 2022 is already on pace to match its 2021 peak[1].
Healthcare
The healthcare/healthtech sector is also expected to be a potential growth area in 2023. As the global population continues to grow and age, there may be increasing demand for healthcare services. Private market investors may want to consider companies that are focused on the development of new medical technologies and treatments, as well as those that are working on innovative approaches to improving healthcare delivery. Healthcare valuations remained strong in 2022, with the median deal fetching a valuation of more than $45M, nearly 33% higher than 2021’s median of $33.9M[2]. It could be interesting to see how the industry evolves into 2023.
Transportation/Logistics
The transportation and logistics industry is also expected to see growth in 2023. As e-commerce continues to grow, there may be increasing demand for efficient and reliable transportation and logistics services. The emergence of self-driving cars and autonomous vehicles are providing new ways to transport goods and are expected to change the way we travel, and it may be interesting to watch these sectors further drive innovation and explore ways to implement these technologies in our day-to-day lives.
The ongoing shift towards electric vehicles (EVs) is also expected to continue, as governments and businesses around the world look to reduce their reliance on fossil fuels. This presents an opportunity for investors to consider companies that are involved in the production of EVs, as well as in the development of charging infrastructure.
Food & Beverage
Food & Beverage is also expected to grow in 2023, especially as consumers seek out alternative proteins and plant-based products. As more and more people become health-conscious and environmentally aware, there could be an increasing demand for organic, sustainable, and plant-based food and beverage options. Private market investors may want to consider companies that are focused on the development of new technologies and innovations in this space, as well as those that are working on new approaches to sustainable food production.
Final Thoughts
Overall, there could be many exciting opportunities for private market investors in 2023. Whether interested in technology, renewable energy, healthcare, or transportation/logistics, there could be opportunities in these areas in the new year. By keeping an eye on these industries and staying up-to-date on the latest developments, investors can educate themselves to see if there is an opportunity suited for them in 2023.
[1] https://pitchbook.com/news/reports/q3-2022-carbon-emissions-tech-report
[2] https://pitchbook.com/news/articles/healthtech-VC-healthcare-valuations
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The information presented here is for general informational purposes only and is not intended to be, nor should it be construed or used as, comprehensive offering documentation for any security, investment, tax or legal advice, a recommendation, or an offer to sell, or a solicitation of an offer to buy, an interest, directly or indirectly, in any company. Investing in both early-stage and later-stage companies carries a high degree of risk. A loss of an investor’s entire investment is possible, and no profit may be realized. Investors should be aware that these types of investments are illiquid and should anticipate holding until an exit occurs.
