A venture company that is doing well even in the corona wreck! Introducing the reasons and noteworthy venture companies
Introducing points and specific examples of how venture companies are growing despite the coronavirus pandemic.
Due to the spread of the new coronavirus, various companies have been hit and their performance has dropped, but on the other hand, there are venture companies that are improving their performance through their own business development even in the corona crisis. . In the background, there are changes in social conditions unique to the corona crisis, which is considered to be a tailwind for venture companies.
This time, let's focus on venture companies that are performing well amid the corona crisis.
*In the "Founding Techo" where I am writing this article, more detailed information is also explained in the thick "Founding Techo / Printed Edition". You can get it for free, so please order it.
Contents of this article
Digitalization of operations is the key to improving performance in the corona crisis
Due to the increase in the proportion of remote work due to the corona crisis, the business that aims to digitize operations is attracting attention. What are the benefits of digitization?
Speeding up decision-making
The digitization of operations speeds up information sharing among various departments. In the past, paper documents were sent to upper management to obtain the approval seals of each department, and then the final approval was completed. However, this method may take several days to reach a decision. The great advantage of using digital tools is that information can be shared quickly, and decisions can be made quickly, so work can be started immediately.
In particular, in a venture company that develops business with a small number of elites, cooperation between staff is smooth, so decision-making can be made more quickly and it is possible to take the initiative in business.
Shift from face-to-face sales to online sales
The sales activities that appeal to companies, products and services were mainly conducted face-to-face. However, since face-to-face contact with customers entails the risk of infection, sales activities are also online. The above shift to online communication has resulted in more efficient sales activities.
With online sales activities, customers and sales representatives can conduct business negotiations through online chat tools without having to go to the other side. This reduces the hassle of traveling and eases the burden on both the seller and the customer.
Increase in demand for online meetings and meetings
It is still fresh in our minds that online chat tools have exploded in popularity, both at work and in private, as people spend more time at home.
In business, the demand for online chat tools has increased dramatically as the need for online meetings and meetings has increased. In particular, the penetration rate of the video chat platform "Zoom" is remarkable, and many people still use it for business communication.
Improve performance by shifting to inside sales
Inside sales refers to marketing results analyzed by the company and targets set by the company without visiting the customer. This is to secure customer development routes and hand over to outside work. Sales activities during the COVID-19 pandemic have shifted to inside sales, which do not involve going outside.
At the same time, as part of our inside sales, we are actively using online services. As a result, everything from online sales activities to ordering products has become commonplace, and smooth communication between companies and customers has become possible, so there are many cases where business performance has improved.
Inside sales should be adopted by venture companies
Inside sales is an important sales activity method during the corona crisis. In particular, inside sales are an effective means of improving business performance for venture companies.
Below, I will list the merits when a venture company adopts inside sales.
・In the conventional external sales activities that can improve the efficiency of sales activities, there is a part that depends on the competence of the individual in charge of sales. However, by shifting to inside sales, you will be able to create a strategic sales plan using marketing and market analysis within your company, and you will be able to improve the efficiency of your sales activities.
・Inside sales, which are highly responsive to remote work, plan and execute sales activities within the company, and it is possible to proceed with remote work. Since it is highly responsive to remote work, sales activities can be carried out without problems even in the situation of the corona crisis, so there is no need to allocate resources to external sales.
・ You can reduce the cost of resources As mentioned above, it is an advantage of inside sales that you can reduce the cost of human resources and time resources in sales activities. Instead of placing a burden only on the sales staff, it is also possible to adopt a method such as asking outsourced staff who are good at sales to participate in remote work.
In this way, by doing sales activities as a team, you can reduce costs as a result.
Businesses attracting attention at venture companies
In the current corona crisis, we will look at the industries that are improving performance, especially at venture companies.
Top industries in 2021
Medical
Venture companies that provide technology such as appropriate treatment and testing to people infected with the new coronavirus is attracting attention. In particular, the development of test kits that can perform cancer tests at home and diagnostic software using AI will reduce the burden on healthcare workers who are overwhelmed by the pandemic.
Consulting
The consulting industry, which includes professionals such as lawyers, tax accountants, and accountants, is also one of the industries that is growing. A major reason for this is believed to be that companies that have suffered from poor performance due to the corona crisis have become more likely to ask experts for various consultations on financing and taxes.
Biotechnology and drug discovery
Vaccination against the novel coronavirus is finally showing signs of becoming widespread. Among them, a bio-based venture company is attracting attention for its development of a device that makes vaccination easier and faster.
In addition, while it is becoming difficult to secure energy supply lines due to the corona crisis, some companies have developed small plants that use hydroelectric power to provide emergency energy supplies and are growing their business.
Environment
Businesses related to the environment are improving their performance by working on long-term projects that look beyond the corona disaster. Sustainable environmental conservation is a challenge for many companies. In particular, venture capitalists tend to actively invest in venture companies that develop green technologies (various technologies related to environmental conservation) that contribute to CO2 reduction.
Lifestyle
In the midst of the corona crisis, the lives of people, not just companies, have changed significantly. Venture companies that propose new lifestyles are also doing well, as the lifestyles of the past have become unmanageable. For example, venture companies that develop technologies such as the introduction of sterilizers that eliminate viruses and contactless switches are attracting interest in their introduction to changing lifestyles.
IoT
As mentioned above, promoting the digitization of operations can be a major factor in surviving the corona crisis. For this reason, IoT technology that makes full use of digital technology to link with hardware is also developing.
Starting with communication technology for remote work, venture companies that handle IoT technology, such as automation of factory operations and remote control of hardware, are doing well.
Platform business
Demand for platforms such as online sales and sales activities (EC) and SaaS (software running on the cloud) that can collectively manage operations is increasing as operations are digitalized. I'm here. Venture companies that develop and release platforms such as those mentioned above are attracting a lot of attention from companies, mainly as B2B businesses, and they are steadily improving their performance even during the corona crisis.
Artificial Intelligence (AI)
Various systems and services that make full use of AI technology are helping to reduce human resources. For example, if you use an application that can recognize speech by AI at accommodation facilities, it will be possible to reduce contactless and labor costs.
In addition, there is a venture company that conducts system research to instantly detect viruses using AI, and it is expected that it will be used as a technology for the future post-corona era.
Education
In the field of education, the number of cases of online classes has increased due to restrictions on school attendance. Therefore, platforms for chat tools and virtual classes are rapidly spreading.
A venture company that develops a communication system that can check and correct students' answers as well as delivery of lessons by teachers is attracting attention in the field of education.
Energy Conservation, New Energy
With the increase in time spent at home due to the corona crisis, interest in energy conservation is increasing.
In addition, the development of new energy technology that goes beyond conventional energy production is also one of the industries that will increase performance. Venture companies that develop energy-related technologies are seizing business opportunities by participating in programs that aim to put energy-saving and new energy technologies into practical use in response to new lifestyles.
Other industries showing growth
Electric vehicles and self-driving technology
A tailwind is blowing for Japanese venture companies with technology.In addition, self-driving technology is not only for privately owned cars, but it is also being considered for introduction to taxis and logistics trucks, and if the technology advances, contactless work can be expected.
Telemedicine technology, etc.
Medical workers are busy dealing with patients infected with the new coronavirus, and the risk of infection when patients go to the hospital cannot be ignored. For the above reasons, attention is focused on industries that develop telemedicine and counseling systems such as online medical examinations, as well as applications that contribute to the recovery of mental health that has been hit by the corona crisis.
Robots, drone technology, etc.
The movement to refrain from going out has boosted demand for online shopping, and at the same time, has encouraged increased demand for the logistics business, and the operation of robots that pick up and transport goods at warehouses. is being introduced.
Furthermore, the number of cases where drones capable of autonomous flight are used to transport products in factories and inspect machinery and equipment is increasing, and venture companies with excellent robot and drone technology are doing well.
Expectations for venture companies based on the level of attention of venture capital (VC)
The market capitalization and funding amount of venture companies are one of the factors that determine the value of a company. And corporate value is also connected to the degree of attention from venture capital (VC).
Market capitalization and funding amount of venture companies in 2020
The estimated market capitalization of venture companies in 2020 is showing an upward trend overall compared to 2019. increase. From this result, it can be read that the innovative technology of the venture company matches the demand of the corona disaster.
On the other hand, the amount of funding in 2020 fell overall in the second half of the year and is on a downward trend compared to 2019 for the year. However, the amount of funding per company has increased, and it is thought that there is a gap between companies that have shown growth in performance and those that have not. Venture companies with a high assumed market capitalization tend to attract more attention from venture capital and receive more funding.
4 venture companies with the highest market capitalization
From here, we will pick up 4 venture companies that have grown rapidly in 2020 in terms of expected market capitalization.
・Mobility Technologies The company mainly develops and operates taxi dispatch apps, and because of its rapid growth in 2020, it is ranked high in the estimated market capitalization. The amount of funding is also showing signs of rising as it has received investments from multiple major venture capital firms.
・Paidy is a company that operates an electronic payment service, and is attracting attention for its convenience in online shopping, which can be completed simply by registering a name and email address. In addition to growing business performance and raising the estimated market capitalization due to the increase in demand for online shopping, there is data that has obtained a large amount of investment from a major venture capital.
・Bitkey The company is developing a service that connects various hardware with digital technology, and has achieved good results with a smart lock system that can lock and unlock with face recognition and smartphones. In addition, we are also anticipating the release of new business tools, and the expected market capitalization has risen sharply, raising expectations from venture capitalists.
・Looop is a company that supplies electricity using renewable energy following the liberalization of the electricity retail market. We have developed a system to manage the receipt of electricity in-house, which enables us to grasp the power generation status and the usage at the electricity purchaser.
The investment amount from venture capital, which also develops the energy business, has shown strong growth, resulting in a rapid increase in the estimated market capitalization.
Top 3 venture companies with the highest amount of funding
In 2020, we will introduce 3 venture companies that have increased the amount of funding from venture capital.
・We are developing and selling next-generation protein materials by fermentation of Spiber microorganisms, which are used for clothing materials with various textures and resin materials without affecting the environment. With a major securities company as the lead, it received investment by securitizing its own business value and ranked first in the amount of funding in 2020.
・VPP Japan is a venture company that provides photovoltaic power generation facilities that generate in-house power and is increasing demand as an energy-saving measure for companies. Due to the strong business, we have received a large amount of loans through syndicated loans (borrowing from multiple financial institutions under the same conditions) led by a major bank.
・ASTROSCALE HOLDINGS We are developing business with an eye on the space environment, and in particular, we support the smooth execution of space projects by developing and providing a space debris removal system. Based in Japan for system research and development, the venture company's growth stage Series E has resulted in stable earnings and an increase in the amount of funding.
Points for VCs to identify venture companies that will grow due to the corona crisis
Then, what are the points that venture capitalists are paying attention to about venture companies that are expected to grow?
It is possible to estimate the market share
In the business that the venture company is developing, it is possible to estimate how much the market share is and whether it can occupy the majority of the market share in the future. Companies that can do this have an advantage.
Is the venture company's business meeting the needs?
As mentioned above, the assumption of market share is also connected to whether or not the needs of the market are being met. If it is considered that the needs are well grasped, the future of the business can be expected.
Entrepreneurs of Venture Companies Attracting Excellent Human Resources
When looking at entrepreneurs of venture companies to be invested in, it is not only their individual competence that attracts excellent human resources. The ability to create a strong team and develop business is also being tested.
Summary
Many venture companies are growing their business due to their small-scale responsiveness and new business development that fits the corona crisis.
The notable venture companies introduced this time are all companies with strong business performance. If you are going to start a business, let's start a new business with an eye on the severe social situation.
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