CapitalG’s 2021 Predictions

CapitalG
CapitalG
Dec 21, 2020 · 5 min read

Predictions for a new year inevitably start with reflection on the past. And what a year it has been.

We’ve seen incredible tenacity from our portfolio companies, the CapitalG team and our amazing network of Alphabet advisors who continue to tackle some of the world’s toughest challenges while living through some of the most unpredictable — and most trying — times in history.

Though we face many challenges ahead, we’re fortunate to work with some of the world’s brightest minds who are more than ready to lead the way. Here are some of the biggest trends, issues and ideas that we believe will move the tech industry forward in 2021.

The Future of Cybersecurity

“COVID will mark the end of legacy corporate security frameworks. Good riddance. The “Zero Trust” framework will become the standard for corporate security, offering much-needed protection for today’s distributed, open and connected workforces.”

Gene Frantz, General Partner

More from Gene: DNC Hacks, Growth VC and the World’s Highest Concentration of PhDs

The ‘No Code’ Revolution

“Move over, Python — there’s a new type of developer in town. Thanks to #NoCode, millions of new citizen developers will become empowered to build B2C and B2B software tools — no coding experience required.”

Laela Sturdy, General Partner

More from Laela: Why No Code Applications Are Revolutionizing the Enterprise

Diversity, Equity and Inclusion

“Venture capital will step on the gas with its all-too-slow embrace of diversity. Press, governments and socially minded LPs will increasingly hold us accountable, but there will still be lots of work to do a year from now. We’re ready for it.”

Jeremiah Gordon, General Counsel & Chief Compliance Officer

The New Fintech Economy

“Every company is becoming a fintech in the race to own customer relationships. The infrastructure companies that enable this transition will win big in the new fintech economy.”

Sumi Das, Partner

More from Sumi: What pandemic-accelerated trend in fintech or financial services do you anticipate will slow in 2021? (Protocol)

Data Analytics For All

“Access to data is democratizing across the enterprise. No more waiting on IT. Self-serve analytics will reduce time-to-insight for business users, empowering every department to make decisions faster than ever before.”

Derek Zanutto, General Partner

More from Derek: How to make data useful — The challenges of big data for enterprises & the promise of data citizens

Vertical Software: The Next Frontier

“Vertical software is the next frontier. Companies will reach untouched markets through the democratizing power of cloud architecture and ‘No Code’ customization — all while growing monetization through embedded payments.”

Jesse Wedler, Partner

More from Jesse: ‘No code’ will define the next generation of software

Multi-stage Investing: Here to Stay?

“Throughout 2021, multi-stage investing will remain all the rage… but by 2022, most investors will refocus on their strengths. A few firms will successfully compete across stages, but most will double down where their passions and track records are strongest. In short, what’s old will be new again.”

Johan Duramy, Senior Operating Partner

More from Johan: Partnerships to Grow by: The CapitalG Approach

SPACs and the Future of IPOs

“2021 will be another big year for public market debuts. SPACs will continue buzzing, but the hottest companies will stick to a traditional IPO on NASDAQ and NYSE. Some things aren’t quite ready to change.”

Kristin Drew, Chief Financial Officer

The Race to Autonomous Transportation

“In 2021, the battle over the $1 trillion-dollar autonomous transportation market will shift into overdrive. We’ll see a clash of the titans as big tech and transportation companies can no longer delay making significant investments in the market.”

David Lawee, General Partner

More from David: Easy to say, hard to do. How I learned to think big.

2021 will be another test of our resilience. But with our partnerships, people, and unrelenting commitment to growth, we look forward to an exciting year full of new possibilities.

CapitalG

Insights from Alphabet’s Independent Growth Fund

CapitalG

We unlock the talent, passion and strategic expertise of Alphabet’s leaders for you. We combine this wealth of knowledge with our own, gained from our portfolio companies’ growth stories, and our own experience as investors, operators, former Googlers and entrepreneurs.

CapitalG

Written by

CapitalG

We are Alphabet’s independent growth fund

CapitalG

We unlock the talent, passion and strategic expertise of Alphabet’s leaders for you. We combine this wealth of knowledge with our own, gained from our portfolio companies’ growth stories, and our own experience as investors, operators, former Googlers and entrepreneurs.