W elcome back! Last time I covered the impact of inflation on startup valuations and the ability of VCs to raise capital. As down rounds continue and fundraising pace slows, VCs who have managed to raise capital (or have large amounts of “dry powder” left to deploy) are looking to place their bets.

The pre-2022 cheap money economy favoured high growth investing at the expense of profitability indicators and admittedly, it worked! Until now. As inflation further complicates outlook, what sectors should investors be focusing on? Although this is not financial advice, I believe that Enterprise software as a service (“SaaS”) is primed for further investment.

Sneak peak of Part 2: What sectors have the potential to perform better in the short- and long-term?

Software is top of its class (in VC): Software has continuously amassed the biggest percentage of VC capital since 2012, but not all software is the same. “Software” can mean a lot of different things. I unpack how SaaS’ emergence around 2010/11 has significantly benefitted companies of all sizes and how this sub-sector is likely to continue growing.