As we enter 2023, investors are focusing their startup investments on several key emerging technology themes that show strong growth potential in the coming years. These include cryptocurrency and blockchain, artificial intelligence, climate tech, fintech, and more. There has been a notable uptick in early stage private funding flowing into startups within these spaces amid a broader VC slowdown. Key factors driving investor interest include massive addressable markets, transformative potential, and exits via IPOs or M&A.
Crypto and Web3 draw investors despite market turmoil
Despite ongoing crypto market volatility, investor interest in Web3 and blockchain startups remains strong heading into 2023. Leading VCs made big bets on crypto infrastructure in 2022, pouring $17 billion into startups in the space. Key areas of interest include NFT platforms, DeFi protocols, crypto security & custody solutions, DAO infrastructure, and more. Investors see massive long-term potential as crypto aims to rebuild financial and internet infrastructure.
AI startups tackle massive TAM amid tech downturn
The AI sector continues to reel in private funding even as overall tech investment slows. CB Insights reports $13.4 billion in funding to AI startups in 2022. Leading applications include computer vision, predictive analytics, conversational AI, and more. The promise of boosting business efficiency across industries is driving corporates to acquire AI startups as well. In 2023, investors will focus on startups democratizing AI through no-code tools.
Climate tech funding resilient despite macro uncertainty
Climate tech has built momentum in recent years as startups tackle renewable energy, EV infrastructure, agriculture sustainability, carbon accounting, and more. 2023 presents uncertainties as interest rates rise, but cleantech VC remains robust with support from government policy tailwinds globally. Key areas to watch include energy storage, carbon removal tech, micro mobility, and climate-focused fintech.
In 2023, crypto, AI, climate tech and other emerging themes are likely to be startup investment highlights amid a funding slowdown in broader tech. Massive addressable markets, transformative potential and strong exit opportunities continue to draw private capital.