(FinancialHealth.net)- For the year 2021, venture capitalists are offering support to startups that have true potential. During the pandemic, venture capitalists have still been buzzing with activity. They are determined to be the driving force for new innovative business projects. Here are a couple of trends that you should be looking into if you are a venture capitalist, ever plan to be one, or if you have a business trying to attract venture capital.
What is Venture Capital?
Known to be a type of private equity, venture capital is a form of financing provided by investors to attract funding for startups and small/medium-sized enterprises (SMEs). To qualify for this financial support, these business projects must have the potential for success in the long-run. Everyone including prominent investors, financial firms, and investment banks channel their contributions to these types of business projects. Venture capital does not always have to be provided in the form of money, rather it could also come in the form of managerial or professional/technical support. A select few companies can attract venture capital based on their likeliness to succeed.
For the first time, startups that serve low-income communities are beginning to attract significant contributions from venture capitalists. As a business service that aims to give back, Cityblock Health treats those who need healthcare by providing social services, primary care, and behavioral care. It looks like the company could be promising and has attracted funding from all around. Cityblock Health was one of the top companies to get support from Town Hall Ventures, whose owner is Andy Slavitt. He used to hold an important position at the Centers for Medicare & Medicaid Services. Many hope that what Cityblock Health is doing could attract investments from venture capitalists to markets that were previously not attractive to them.
The IT and cell phone app market is filled with tons of ideas. But everything has become so repetitive. Beginning to expand its horizons, one company chose to shift its attention to the apps that are used in your typical work environment. What kind of apps do you use at work? How can you use them to measure your productivity at work? Studies have found that the average employee can use up to eight apps during the working day. Notion is a company that has innovatively brought all those productivity apps and software into one place so that all the information the average employee would need is quickly accessible. With funds from all over the venture capital world, Notion is growing at a rapid pace. Aspiring venture capitalists who want in on the action should look into the company as an opportunity.
Now, that’s something that everybody needs these days. But calm is not just a feeling! Valued at $2 billion, Calm is a relaxation app that has raised $75 million in funds, and venture capitalists still can’t get enough of it. Though the market is filled with meditation apps, Calm has a less mystic element to it and focuses on more emotional tools to make you feel calm. Who would have known that something like meditation could attract so many investments?
Banks haven’t had the best reputation in recent years. But what if we told you that there is something that works exactly like a bank but doesn’t look like one? Cherishing the spirit of innovation, you won’t find a single branch for the company Chime. Your phone is now the way to make use of its financial services. The new revolutionary ideas behind this service have paid off, with the company’s revenue and transactions tripling during the previous fiscal year. Valued at $14.5 billion, Chime is said to be the most promising fintech startup in the US, preferring to designate itself more as a software company than a financial firm.
~Here’s to your Financial Health!
Copyright 2021, FinancialHealth.net