Rev1 Ventures Leadership Team Shares 2022 Startup Predictions
Investor Reveals Insights to Help Entrepreneurs Succeed in Year Ahead
Columbus, OH – December 15, 2021 – Today, leaders from Rev1 Ventures, the startup studio that combines capital and strategic services to help startups scale and corporates innovate, are revealing top predictions for what startups can expect in the next year. 2021 was undoubtedly another year of ups and downs, as the world and businesses worked to rebound from the height of the COVID-19 pandemic. According to Pitchbook, U.S. startups raised roughly $240 billion in the first nine months of the year – breaking all records for US startup funding.
This year, Rev1 launched its second corporate-backed fund, Rev1 Fund II, a $20MM fund aimed at supporting high-growth companies in Ohio and beyond. Rev1’s portfolio has attracted a record $200MM in capital which included exit proceeds of $64MM for the region’s startups this year.
In an effort to help entrepreneurs make the most of the year ahead, Rev1 is revealing its top predictions for what’s on the horizon for the startup ecosystem in 2022:
● Chief Executive Officer Tom Walker says that 2022 could be the year of “seize the moment” for startups and entrepreneurs. With the economy charging back, and with record amounts of venture capital being raised and flowing, the opportunity for funding is improved for startups at every stage. Many portfolio companies are expanding fund-raising right now specifically to compete aggressively in today’s talent world. The market for top talent has never been more competitive nor more important. Talent is likely to be the number one challenge entrepreneurs face in 2022. Startups and their boards must develop talent strategies earlier and then back those strategies with the funding to attract and retain the talent needed to execute on the business plan.
● Chief Operating Officer Kristy Campbell says startups should embed diversity, equity and inclusion (DE&I) into their business plan from day one. It’s a fact: companies with diverse leadership teams are more successful, so making DE&I a priority gives the company a leg up. This starts with the founding team, who must believe in and live out the culture in their daily actions. From the hiring process to the customer experience, DE&I principles should influence the company’s priorities and decisions.
● Chief Business Development Officer Mike McCann says more venture capital money is going into the economy than ever before. Corporate investors have increased their involvement in venture capital rounds. Comparing the first 9 months of 2021 to the first 9 months of 2020, corporates increased the number of rounds they’re participating in by more than 80%. Also, through Q3 2021 corporate investors participated in more than 18% of all venture capital rounds, up from 16.5% through Q3 2020. Startups should be aware of how strategic partners or potential corporate clients are approaching innovation so they can help them address their evolving needs. Large firms need to think about how to leverage this vast pool of external R&D. Can it help you solve problems for current customers, expand product lines, or help you break into more radical spaces and new business models? Creating teams, partners, and networks to source, assess, and engage with emerging companies with consistency and speed is a vital ingredient for success in 2022.
● Chief Financial Officer & Chief Compliance Officer Dave Dillman says startups should focus on their key strategic decisions. Some business owners get caught up in the day-to-day “running my business” activities and need to step back and think through their business strategy. They can get caught up in the daily work and waste time (and precious runway) running their business down that path. Take some time to regularly revisit your strategy, engage experts (mentors and fractional professionals) and make sure you are on the best long-term path.
● Executive Vice President, Venture Acceleration & Investments Wayne Embree says understand where your next round of capital will come from. While venture investment over the last 24 months has shattered all previous records and money is clearing flowing into the market, the overwhelming majority of this capital remains focused on three markets: California, New York and Massachusetts. Secondary and tertiary markets continue to suffer significant capital gaps, especially for seed and early stage companies. Bottom line – startups outside of major hubs need to focus on validating their approach and market to capture the attention of the investors in their region.
● Executive Vice President, Investment Funds Ryan Helon says investors and corporations alike are keen on supporting innovations in digital health, healthcare IT, HR technology, fintech, insurtech, data analytics, enterprise Software as a Service. Enhanced virtual and preventative health care, including digital therapeutics, will be a particular focus – as will core AI technologies delivering enhanced data analytics for healthcare, logistics, and other industry verticals.
This year, startups in the Great Lakes have already raised approximately $11.7 billion through three quarters, up from $8.2 billion in 2020 and $5.7 billion in 2019. The region has seen a more than 500 percent increase in venture capital funding in the past decade (since 2012). For more information about Rev1’s unique approach to helping entrepreneurs build great companies, visit www.rev1ventures.com.
About Rev1 Ventures
Rev1 Ventures is the startup studio that combines capital and strategic services to help startups scale and corporates innovate. Based in the Midwest, Rev1 connects entrepreneurs to talent, customers, space and funding, to help entrepreneurs build great companies. With a proven track record of success, Rev1 is the most active seed investor in Ohio for the past seven years. For more information, visit www.rev1ventures.com.