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Predicting the Best Five Categories for Venture Capital Investment in 2023

Picture of Heath Butler

Heath Butler

Welcome to the world of venture capital in December 2022, where the economic environment has drastically changed and valuations have plummeted compared to 2021. In this environment, venture capitalists are seeking to invest in companies that have proven their ability to generate revenue and have a solid team to execute their vision. In this blog post, I will predict the best five categories that new entrepreneurs should focus on in 2023 if they are looking for venture capital investment.

1. Technology Training Solutions for upskilling and reskilling

The rapid shift to a digital world has left many workers struggling to keep up with the new technologies and skills needed for their jobs. This has created a demand for technology training solutions that upskill and reskill workers to better operate in a world where everything is digital. Companies that can provide effective and scalable solutions to this problem will be in high demand. Reference: Forbes

The global economy is constantly evolving, and in recent times, technological advancements and the impact of the COVID-19 pandemic have led to significant changes in the way we work. This has resulted in a growing need for upskilling and reskilling the workforce to keep pace with the demands of the modern workplace. Upskilling and reskilling not only help workers become more effective and efficient in their jobs but also enable organizations to remain competitive and adapt to the changing economic environment.

Here are some reasons why upskilling and reskilling are essential for workers in the current economic environment:

  • Keeping up with Technological Advancements: Advances in technology are transforming the way we work, and those who fail to keep up risk being left behind. Upskilling and reskilling programs help workers acquire the necessary knowledge and skills to work with new tools and technologies. Doing so, can increase their productivity, efficiency, and effectiveness, making them more valuable to their organization.
  • Responding to Changing Job Demands: The job market is constantly evolving, and workers need to be able to adapt to changing demands. Upskilling and reskilling can help workers stay relevant in their field or transition to new industries. This is particularly important in industries that are undergoing significant changes, such as the healthcare, finance, and manufacturing sectors.
  • Improving Career Prospects: Employers value workers who are willing to learn and improve their skills. By upskilling or reskilling, workers can demonstrate their commitment to their profession and enhance their career prospects. This can lead to opportunities for career advancement, higher pay, and increased job security.
  • Boosting Employee Engagement: Workers who are provided with opportunities to learn and grow are generally more engaged and motivated. Upskilling and reskilling programs can help employees feel valued by their organization and increase their job satisfaction. This, in turn, can lead to better retention rates and a more positive workplace culture.
  • Meeting the Needs of the Future: As the economic environment continues to change, organizations will need workers who possess new and specialized skills. By upskilling and reskilling workers now, organizations can prepare for the needs of the future and remain competitive in their industry.

In conclusion, upskilling and reskilling are essential for workers in the current economic environment. By acquiring new knowledge and skills, workers can improve their productivity, adapt to changing job demands, enhance their career prospects, boost their engagement, and help organizations prepare for the future. It is essential for organizations to invest in these programs to remain competitive and achieve success in the long term.

2. Cybersecurity

With the rapid increase of attacks on companies and infrastructure, cybersecurity has become a top priority. Companies that can provide effective and innovative cybersecurity solutions will be in high demand. This includes solutions for both businesses and individuals. Reference: Business Standard

In recent months, the news has been filled with stories of foreign nationals targeting private companies through cyber-attacks. From the SolarWinds breach to the ransomware attacks on Colonial Pipeline and JBS, it’s clear that no organization is immune to these threats. That’s why it’s more important than ever for companies to invest in cybersecurity improvements to prevent these attacks from happening.

Here are some reasons why investing in cybersecurity is crucial to protect private companies:

  • Preventing Data Breaches: Data breaches can be catastrophic for companies, resulting in the loss of sensitive information and damage to their reputation. Cybersecurity measures such as firewalls, antivirus software, and intrusion detection systems can help prevent unauthorized access to company networks and data.
  • Protecting Intellectual Property: Intellectual property (IP) is often a company’s most valuable asset. Hackers may target companies to steal IP for their own gain or to sell to competitors. Cybersecurity measures such as encryption and access controls can help protect IP and prevent it from falling into the wrong hands.
  • Maintaining Business Continuity: Cyber-attacks can disrupt business operations, leading to downtime and lost revenue. Investing in cybersecurity measures such as backup and disaster recovery plans can help companies recover quickly from an attack and minimize the impact on their business.
  • Compliance with Regulations: Many industries are subject to regulations that require companies to protect sensitive data. Failure to comply can result in fines and legal action. Investing in cybersecurity measures can help companies meet these regulatory requirements and avoid costly penalties.
  • Staying Ahead of Evolving Threats: Cyber threats are constantly evolving, and companies need to stay up to date on the latest threats and vulnerabilities. Investing in cybersecurity improvements such as regular security assessments, employee training, and threat intelligence can help companies stay ahead of these threats and protect themselves from potential attacks.

In conclusion, investing in cybersecurity improvements is crucial to protect private companies from cyber-attacks by foreign nationals. By preventing data breaches, protecting intellectual property, maintaining business continuity, complying with regulations, and staying ahead of evolving threats, companies can protect themselves from the potentially devastating consequences of a cyber-attack. It’s important for companies to make cybersecurity a priority and invest in the necessary measures to safeguard their assets and ensure their continued success.

3. Sportstech

Sportstech has become increasingly important in recent years, and it is expected to continue to grow in 2023. This includes technologies that enhance the fan experience, such as virtual reality and augmented reality, as well as technologies that improve the performance of athletes. Companies that can provide innovative solutions in these areas will be in high demand. Reference: CB Insights

  • Athletes – A Trusted Endorsement: Athletes have long been popular endorsers of products and services we use in our daily lives. This is because they are often seen as trustworthy and relatable. Sports fans are more likely to trust and purchase the products they endorse. Additionally, athletes often have a broad reach across different demographics, making them a valuable endorsement for companies targeting a wide audience.
  • Athletes – A Global Following: The global following of many athletes makes them particularly valuable endorsers for companies with a worldwide customer base. Additionally, they can help companies penetrate new markets by introducing products to their fan base in other countries.
  • The Intersection of Sportstech and Athletes: The intersection of sportstech and sports athletes is particularly appealing to investors and marketers. Sportstech can help athletes improve their performance, and athletes can lend their endorsement to products that utilize this technology. Additionally, athletes can provide valuable feedback to developers of sportstech, helping to improve the products and make them more appealing to consumers.

In conclusion, sportstech and athletes continue to be attractive to venture capitalists and marketers, respectively. The sportstech industry is growing rapidly, driven by advancements in wearable technology, data analytics, and virtual reality. Athletes are popular endorsers of products and services we use in our daily lives, trusted by fans and with a global following. When these two trends intersect, the result is a powerful combination that can lead to successful investments and marketing campaigns.

4. Artificial Intelligence Tools

Artificial intelligence has been a hot topic for years, but it is expected to continue to be an important area of focus in 2023. Companies that can provide AI tools to solve real-world problems in industries such as healthcare, finance, and manufacturing will be in high demand. According to an article published by Forbes in October 2022, AI and machine learning have become one of the most investable areas in the technology industry. The article cites a report by PwC which states that AI is expected to contribute $15.7 trillion to the global economy by 2030. This presents a massive opportunity for investors and businesses alike. Reference: Forbes

Artificial Intelligence (AI) tools such as ChatGPT are on the rise and are set to revolutionize the world in a multitude of ways.

It is first important to understand why AI tools are becoming more prevalent. One of the main reasons for this is the exponential growth in the amount of data being generated by individuals and businesses alike. AI tools like ChatGPT are designed to analyze this data and provide valuable insights to users. Additionally, advances in machine learning and natural language processing have made AI tools more accurate and efficient, leading to greater adoption by businesses and individuals. So, how will AI tools like ChatGPT change the world?

  • Improving Customer Experience: AI tools like ChatGPT can be used to improve the customer experience by providing personalized recommendations and support. Chatbots can be programmed to understand natural language and respond to customer inquiries quickly and efficiently. This can lead to increased customer satisfaction and loyalty.
  • Enhancing Healthcare: AI tools can be used in healthcare to improve patient outcomes by analyzing large amounts of medical data and providing personalized treatment plans. This can lead to more effective treatments and reduced healthcare costs.
  • Advancing Scientific Research: AI tools can be used in scientific research to analyze large amounts of data and identify patterns that humans may not be able to detect. This can lead to new discoveries and advancements in various fields, including medicine, physics, and environmental science.
  • Improving Business Operations: AI tools can be used in business operations to automate repetitive tasks and improve decision-making processes. This can lead to increased efficiency, reduced costs, and improved productivity.

In conclusion, AI tools like ChatGPT are on the rise and will continue to be a significant investment opportunity in 2023 and beyond. They have the potential to revolutionize various industries and change the world in profound ways. As businesses and individuals continue to generate massive amounts of data, AI tools will become even more essential in analyzing this data and providing valuable insights.

5. Government Technology Solutions

Government technology solutions have become increasingly important in recent years, and this trend is expected to continue in 2023. This includes solutions that democratize power to citizens and improve government efficiency. Companies that can provide effective and innovative solutions in this area will be in high demand. Reference: Deloitte

In recent years, technology has played an increasingly critical role in politics, particularly in election campaigns. The rise of social media has made it easier for citizens to connect with political figures and voice their opinions. However, there is still a significant gap between the public and the government. In 2023, government technology that empowers citizens to engage and transfers the power of providing a voice to elected officials to the citizen is set to become one of the most venture investable areas. Let’s explore why.

With the growing distrust between the public and the government, there is increased demand for more transparent and accountable governance. The use of technology in government can help bridge this gap by providing citizens with better access to information and more direct communication channels with their representatives.

  • Citizen Engagement: One of the ways this technology can be utilized is by creating platforms that enable citizens to engage directly with their elected officials. This can include everything from voting in elections to submitting petitions, feedback, and questions. Such platforms can be created using blockchain technology, ensuring that the data collected is secure and tamper-proof. Given the success of technology in the previous elections, it’s safe to predict that the role of technology will only continue to grow in the 2024 presidential, congress, and senate elections. In previous elections, technology has been used to drive voter turnout and engagement. It’s expected that this trend will continue in 2024, with political campaigns leveraging digital tools to better connect with voters.
  • Connection via Social Media: Social media platforms are likely to be heavily utilized by political campaigns. These platforms can help candidates connect with younger and more diverse audiences who tend to be more active on social media. Furthermore, social media algorithms can be leveraged to target specific groups of voters with tailored messages.

Government technology that empowers citizens to engage and transfers the power of providing a voice to the citizen is a highly investable area in 2023. With the increasing demand for more transparent and accountable governance, the use of technology in government can help bridge the gap between the public and the government. Furthermore, the role of technology is expected to continue growing in future elections, making this an attractive opportunity for venture capitalists looking to invest in cutting-edge technologies. As such, we can expect to see significant investments in this area in 2023 and beyond.

To wrap this all up, while the economic environment in December 2022 is challenging for entrepreneurs seeking venture capital investment, companies with solid teams and proven technology in big markets will still attract investment. The five categories predicted for 2023 that entrepreneurs should focus on include technology training solutions, cybersecurity, sports tech, artificial intelligence tools, and government technology solutions. By providing innovative solutions in these areas, new entrepreneurs can position themselves for success in the new year.

Until next time, stay curious, focus on the signal and make mindful decisions on your journey to success,


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