The best TechCrunch+ investor surveys of 2022

The best TechCrunch+ investor surveys of 2022

Horse racing is a sport where the stable boys are the best source of information about which horse will win.

When we considered the best way to find out what was happening in a sector, we decided to get it directly from the source — the investors.

TechCrunch views investor surveys as a way for founders and investors to get a better understanding of their market. We conducted 30 surveys this year and the feedback has helped us improve and broaden our scope.

We are nearing the end of 2022, so here are some of the most interesting answers that our surveys revealed this year.

Ten investors discuss the low-code and no-code landscape in Q1 2022

Are you skeptical of low-code/no-code? What aspects are too hyped?

Sri PangulurPartner, and Paul Lee, partner, Tribe Capital

We have concerns about the current no-code/low code thesis in a few areas. First, pre-coded elements interfaces will not cover all edge cases. It’s the edge cases that force the user to rely on their current workflow.

We think that the no-code/low code category is becoming a bit saturated horizontally. There is some user confusion. One group of co-workers may push for collaboration in one application, while another group may want to use a different solution. This can reduce productivity.

No-code can work in verticals that have well-defined use cases, a lot of pull from non-developers, and where the target user is also a buyer. Many companies now make it easy to convert designs into mobile apps or web apps via drag-and-drop. This is a highly desired feature for designers.

However, larger enterprises may require more customization so a drag-and drop approach is not an option.

Check out the complete survey Here.

8 investors weigh-in on the state insurtech in Q3 2022

What insurtech business models are gaining the most traction in today’s market? Are they the same models venture investors are investing in now?

Clarisse Lam, associate, New Alpha Asset Management

Embedded insurance is gaining popularity. The embedded model is even more useful in an industry where “insurance cannot be bought, sold, or bought.” There are many players in the field, with most focusing on the gig economy. However, embedded insurance can also be used in other verticals such as recruitment and mass retail. This sector has attracted millions of dollars in investor capital and will continue to attract more as embedded insurance’s value is unlocked across all markets.

Insurance is still a relatively underdigitized industry. B2B SaaS providers have a huge market opportunity to drive innovation across all value chains (e.g. by improving claims processing and risk management, pricing, and pricing). Insurtech is needed to address the challenges that incumbents face in their digital transformation.

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Martha Notaras, general partner, Brewer Lane Ventures

Many MGAs and full-stack, technology-driven insurance carriers have built impressive premium bases in newer risk categories, such as cyber. Venture investors are now more selective in investing in MGAs, as they wait for them to scale. This is due to the current public-market trading. Investors are looking forward to exit.

[[Editor’s note: As David Wechsler Noted in a guest post“A managing general agent (MGA), is a hybrid of an insurance agency (policy selling) and an insurance carrier (underwriting, assumption of the risk ).

Investor enthusiasm is high for B2B insurtechs that have recurring revenue models. These startups are providing efficiency and cost savings to traditional insurance companies. Existing insurers have also become more open to startups to solve difficult operational problems.

Check out the complete survey Here.

5 construction tech investors examine 2022 trends and potentials

Construction has been reluctant to adopt cutting-edge technology. This is a marketing problem, or a problem with product-market fit?

Momei Qu, managing director, PSP Growth

It’s a problem of stakeholder relations. Owners may have different needs than subs, architects, lenders, or GCs. Technology that attempts to serve all of them may not succeed, while technology that targets one party may have difficulty scaling and willingness to pay. You get something special when all stakeholders love it.

Sungjoon Cho, general partner, D20 Capital

Construction is a sector in which “move fast and make things happen” is not a strategy. A new technology “breaking things” can have severe consequences, so it makes sense to adopt conservative technologies. Large construction companies often have innovation teams that test new technology and advocate for its adoption.

We are seeing a rapid increase in the adoption of new technology. However, due to the conservative nature the construction sector, a characteristic is low initial ACV (average contractual value) and strong NRR (net revenues retention). Customers deploy the technology on a few projects and then expand usage as the technology proves itself.

Check out the complete survey Here.

Five climate tech investors share their reasons for being in the game a decade after the bubble burst.

Which of the emerging climate techs such as direct air capture and hydrogen-powered industrial processes have the greatest potential to make a difference in the next ten years? What three climate techs do you see becoming widespread by 2030?

Pae Wu, general partner, SOSV CTO of IndieBio

In the next 10 years, process-oriented technologies such as supplanting energy intensive chemical production with scaled biology and electrically enhanced processes will change energy dynamics in heavy industry.

2030 is not far away, so widespread adoption and use of what some call bridge technologies is where I see real progress. Many of our problems are human-level issues that limit implementation and a fundamental fear of change. Our disruptions must continue to chip away at this fear.

What does this look like? These include emissions-free, drop in replacements for petrochemicals as well as materials for the built environment which are not dependent upon a green premium. Some of these technologies are advanced enough to be able to compete with petroleum.

Electric vehicles could be the solution to “widespread” by 2030, according to some. This is still a major problem that affects every aspect of our lives and 2030 is only eight year away. Moderna was creating a vaccine against Ebola, and Russia annexed Crimea. This was in 2014 when Hong Kong’s pro-democracy protests were raging.

Eight years later, not much has changed. The U.S. will have a 2030 population. Exceeded It is unrealistic to expect that even 15% of light-duty vehicles will be electric by then.

Although I sound doom and gloomy, all I am saying is that it’s all hands on deck and we need many solutions to this problem from all sides. There won’t always be a solution, but if investors are smart and lucky, we’ll have a lot of climate tech Googles or Amazons to bring to market and also to help stop the worst effects of climate change. To win, we need everyone.

Check out the complete survey Here.

8 fintech VCs discuss shifting investing landscape and how they can pitch them in Q3 2022

Many are calling it a downturn. How has your investment thesis changed over the past few months? Are you still closing deals at the same speed?

Addie LernerFounder and managing partner. Avid Ventures

We began slowing down our investment pace in the first quarter of 2021, despite the fact that many other firms were still deploying rapidly. This was due to the increasing disconnect between the valuations and the traction achieved early-stage companies. Since our February 2020 investment, Avid Fund I has been measured in its deployment. Given our unique investment strategy, Avid Fund I will have a four year deployment period.

Our investment approach is unique in the current market environment. Our strategy is to get in touch with the best founders before their Series A, back them before or during the Series A with a flexible, “toehold” check alongside top tier lead and/or investor investors, and then add significant value as a “strategic financial adviser” after investment. Once we have built up conviction, we can write a larger “double down” check in the next round. Our flexible and patient investment strategy will allow us to take advantage of unique opportunities in a market with less time between rounds and more founder and insider willingness to extend rounds and “in-between”. We are making new investments at a steady pace.

Check out the complete survey Here.

7 fund managers who are new to the industry share their strategies for surviving the downturn.

We have heard that fund managers who are new to the industry will find it difficult to raise another fund now that the cycle has turned. Do you agree? If not, why not?

Giuseppe StutoCo-founder and managing Director 186 Ventures

It may not be as simple to raise a second fund today than it was in the past two years. It is not binary. We don’t think it will be easy for firms that have created a unique platform and approach to attracting early-stage founders.

It’s a multidimensional problem that takes into account many variables. Professional LPs realize that even though assets, especially alternative assets, are priced lower than usual, meaningful access to the venture asset classes is crucial over the next few decades.

We will also likely see (and already have seen) amazing pricing and terms over the coming months and years. If you don’t invest in firms with a solid foundation, you could miss out on investor-friendly valuations.

Naturally, LP commit sizes will decrease and managers who have been in the business for a while may be more inclined to accept LPs. We are in a multidecade environment, and professional LPs will continue to prioritize accessing newer managers.

Check out the complete survey Here.

7 investors discuss why edtech startups need to go back to basics in order to survive

What sectors are you seeing edtech cross-over with these days? What is the latest overlap that has you pumped up?

Jan Lynn-MaternFounder and partner. Emerge Education

We are seeing some very interesting new players in fintech and education technology. Mattilda is a Mexican startup that provides financial services to schools. It was our latest investment. Its core product, mattilda, is a SaaS platform that guarantees revenue. Schools receive a fixed monthly payment and mattilda streamlines the invoicing and collection process.

We are also excited to see the intersection of health tech, edtech and entertainment, productivity tools and education technology.

Ashley Bittner And Kate Ballinger, Firework Ventures

We are seeing edtech cross over with so many verticals. There are many examples of businesses operating at the intersection of edtech, fintech, HR tech and diversity and inclusion in our portfolio. We are particularly excited about edtech’s intersection with climate action and internet3.

Climate action: We believe economic mobility and climate action are the most pressing issues of our time. Climate change will not only require the creation of new technology, new energy sources, and adaptations to our daily lives, but also millions of new jobs.

Today, most technical skills have a half-life of less than three years. Rapid innovation and shift to a green economy are only increasing the half-life of skills. It is estimated that 85% percent of all jobs for 2030 have not been invented yet. To address both climate change and improve economic mobility, it is important to prepare people for these new green jobs.

Web3: In the last few years, there has been a rapid increase in web3 applications. We are looking for web3 applications that support our thesis (creating opportunity and access, and driving economic mobility and social mobility). We are specifically looking for web3 applications that support our focus on skill-building, such as learn-to-earn, metaverse learning (tangentially thought web3), and learning DAOs.

Check out the complete survey Here.

Five cloud investors show the many paths for startups

What is the market for cloud service providers that offer additional services beyond their core offerings?

Shomik Ghosh, partner, Boldstart Ventures

I am not being facetious when i say infinite. You can see the product catalog of AWS to see all the services it offers. It would take many years to fully understand all it has to offer.

If we extend the definition of “cloud providers” to include the storage layer and compute layers, almost every public or private company that offers a cloud service has multiple product offerings.

Liran GrinbergCo-founder and managing partner Team8

It begins to decrease. Although cloud providers are very skilled at many things, they don’t have the ability to do everything well. Non-cloud-provider vendors are gaining a large market share in components that were previously part of cloud providers. Snowflake is an excellent example. This trend is likely to continue due to the complexity of modern technology and the rapid rate of innovation.

Check out the complete survey Here.

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