Jan 19, 2022
An Outlook on 2022
As the record-investment dust of 2021 is settling, we took the opportunity to ask Mitch Kitamura, Managing Partner at DNX, to share DNX’s view of what is taking shape ahead, as 2022 takes off. What can entrepreneurs expect this year? How will the temperature of the VC market continue to evolve? Where will DNX focus this year?
What may be most important for entrepreneurs in 2022, especially if they are looking to fundraise?
The good news is that we think the fundraising climate for entrepreneurs will continue to be positive. 2021 wrapped up as a record year in investments and unicorn exits ($621B venture capital investments corresponding to a 111% increase, and 959 unicorns globally which is a 69% YoY increase — source: CBInsights). With that said, it will be necessary for entrepreneurs to have the following two legs to stand on: a solid base business and a big plan. The mix of the two is always relevant and vital; however, we find it more important this year because of rising uncertainty. Investors are paying more attention to the business’s current status while the macro environment remains unclear.
How will the VC market evolve?
Continuing from last year, we think the VC market will continue to be bullish. We see increasing capital available from traditional investors, like VCs and CVCs, and large institutional investors, who were not part of the startup investment arena before. With such, entrepreneurs will benefit from new and creative financial schemes, so it will be essential to keep your eyes peeled. In terms of location, Silicon Valley will continue to be the center of the startup world (still the largest risk capital hub in the world in 2021, although both New York and China are on the rise), but it is not the only place to find treasure. We see great startups coming up from all over the world. We already see opportunities from US cities such as Austin and DC and places like Germany, Mexico, and others.
What will be DNX’s focus this year?
We love working with startup founders, and that will never change. What we feel is critical is to support entrepreneurs who are shaping the future. For instance, climate and sustainability are such important topics that directly affect our lives. We also see privacy and security are important parts of the long-term sustainability of the internet world. Last but not least, how we purchase goods and the technology around us is evolving, and we will be spending more time diving deeper into retail, fintech, and enterprise SaaS.
🔗See Mitch’s LinkedIn
