Times are changing..

As a venture investor, change is my ally. While inertia favors the incumbent, broader shifts in how we live, work and play favor the startup. Given this dynamic, venture investors constantly looking for areas where startups can leverage change — economic, social, technology, or otherwise — to their advantage. Sometimes this is called the “why now?” in venture jargon.

Below are 6 demographic shifts that bring with them new pain points, opportunities and startup tailwinds.

• Urbanization. Every week the number of people living in cities grows by 1.5M. How will our infrastructure, mobility, air, food, environment, government, education and resource allocation change as more and more people live in cities?

Source: UN. San Francisco has acutely felt the impact of urbanization on rental prices in SF/Bay Area — with many feeling priced out of the market.

• Concentration of middle class shifting to China and India. Instead of 45% of middle class in U.S. and E.U., by 2030 that number will shift to 20%, with China and India hosting 40% of the middle class. What does this mean for our global economy and small and large business’ resource allocation?

• Aging population across our globe. For many developed countries, more than 40% of their population will be over the age of 65 by 2035. What does this mean for our healthcare system, our economy, our government, and how family units are defined?

• Decrease in motherhood. Less children are being born, and to older mothers. How does this change the role of women in the workforce, effect our healthcare, and change our approach to parenting?

Source: WSJ. Startups in the fertility space have responded to this trend, helping mother’s conceive later in life.

• Marrying later in life. How does this effect the role of women and men, our extracurriculars, and our approach to dating — both online and offline?

source: bbc.com

• Inequality. How will inequality in America continue to effect our politics, beyond Donald J. Trump’s successful populist movement? And, given the bifurcation of society into those “with more” and those “with less” are businesses reinforcing this divide by deciding to serve one group verse the other?

Progress in artificial intelligence promised to automate many jobs continuing to reinforce the income inequality that began to rise in 70s. Source: Washington Post excerpted from Unequal Gains: American Growth and Inequality since 1700. Courtesy of Princeton University Press

• “The Great Decoupling”- rising productivity, but no corresponding increase in employment. As artificial intelligence continues to enable the automation of more and more work, what will happen to those that lose their jobs to machines? Will Universal Basic Income be an effective solution?