December 30, 2021

Investment trends to look out for in 2022

The year 2021 saw an excellent number of start-ups make their exits and debuts into the IPO pipeline. New players such as edTech and Health-tech joined the investing trends, taking the global market by storm.

This has also been a record-breaking year for venture capitalists on a global scale, as start-ups across industries raised a whopping $580 billion in funds.

The global investment trends predicted for 2022 show that the market is not slowing down. Investors looking for long-term investments in 2022 have these industries to watch out for :

1. Electric Vehicles

Investment industry trends place electronic vehicle investments as a front-runner. The future is electronic vehicles. This statement is not true just for cars but also for transporting goods. The first electric cargo ship ‘Yara Birkeland’ hit the water in Norway. Norway has also gone a step further and banned the sale of gas cars after the year 2025.

Automobile manufacturing companies like Jaguar and Volvo aim to completely scale back gas-powered vehicles within the next decade, while General Motors released a statement saying they aim to produce only EVs by 2035. Global investment trends depict The massive transformations in the EV sector could make it a trillion-dollar industry. Investors looking for long-term investment opportunities should consider these investment trends and invest in the EV industry.

2. EdTech & Education

The persistence of Covid-19 and its variants has driven the education sector to innovate and improvise. EdTech companies redefined global investment trends by entering the market. According to PitchBook data, investors directed $13.8 billion towards EdTech start-ups in 2021.

The learning platforms Coursera debuted on the NYSE along with Duolingo, followed by Udemy, with an initial market value ranging between $3.5 billion to more than $4 billion.

Projections show that these global investment trends and prospects will prevail in 2022 as EdTech giants such as Byju’s, the online learning platform that raised around $300 million with a valuation of $18 billion. Investment bankers reckon it could be valued at $40 – $50 billion if it chooses to be listed. Unacademy’s value has risen to $3.44 billion, with eyes on their new courses like upskilling and creator. Upgrad hit a valuation of $1.2 billion in August 2021. These are among the few other highly anticipated EdTech start-ups rumored to go public in 2022.

Following these investing trends, the EdTech industry shows great value and prospects in the years to come.

3. Health-Tech and Healthcare

Another investment trend that has accelerated courtesy of the pandemic, with the potential for great returns are health-Tech investments. The shortfalls faced by the healthcare sector during the pandemic prompted the growth of health-tech start-ups and the use of artificial intelligence in diagnoses. Global investment in the sector reached a record high of $23.8 billion, according to a Deloitte report, covering the first nine months of 2021.

This gave the health-tech industry a base to be a part of the global investment trends that will continue to attract investment in 2022.

Start-ups like Phyt.Health, India’s first Computer Vision and AI-based digital physiotherapy tech platform, aims to regulate your post-surgery recovery process and, Pharmeasy, an online pharmacy ordering platform that lets users order diagnostic tests and medicines was valued at $5.6 billion. These companies have planned their exits for 2022.

Investing in the innovations produced by the health-tech sector is an investment industry trend one shouldn’t miss.

4. Technology

Keeping up with the global investment trends from last year, the ever-growing and evolving tech industry is the most sought-after for its returns. And is said to continue to dominate the investment trends charts in 2022. Within the tech sector, these are a few investment industries to keep an eye on.

Artificial Intelligence
The metaverse
Cryptocurrency
Fintech

Spacetech
Cloudtech
cybersecurity

AVCJ has observed that investing trends in Indian tech start-ups was at a record high of $28.2 billion in 2021, spanning across 770+ deals.

Investors mentioned to CNBC that, as they grow and mature, India’s tech start-ups will continue to draw capital investments from both private and public markets next year.

PhonePe, Mobikwik, Droom, Policy Bazaar, CRED, Rayzorpay, AgniKul Cosmos and Skyroot Aerospace are some highly anticipated investment opportunities in India to watch for.

5. Consumer retail services

Global investment trends favor the companies offering services we use on a day-to-day basis. As long as there are consumers, consumer retail and service companies will continue to attract sales and gain investors returns. Investment trends monitor that convenience is what people value most, and the market for innovative products is always expanding.

As a general idea, there is a tendency to associate investing with people who are rich. But the IPOs of Zomato, Nykaa, MedPlus debunked this myth as many people invested in them and are now gaining good returns on their shares. Retail media networks have also joined the list of promising investing trends, with revenue projections of $50 billion globally by the end of 2022.

The sector of consumer platforms and services as a part of the global investment trends viewed are generally companies that people know and have personal ties to.

Consumer-driven services such as Urban Company, OYO, Meesho, boAt, OLA etc, are a great attraction drawing users from across income backgrounds with the potential of yielding great returns on investments.

Apart from the sectors mentioned above, a few other sectors that remain part of investment industry trends are Real Estate, ESG investing, augmented and virtual reality, and the blockchain.

On the whole, 2022 appears to have great potential in every up-and-coming sector, despite fears of omicron and inflation projections. A new year comes with a bonus of hope and optimism. It’s now a matter of keeping an eye on the prize and for the next best investment prospect.