Investing in startups is one of the most effective methods for driving innovation and improving technology across many industries. Today, the most prominent players in venture capital and technology are funding countless efforts that support startups in countries across the world.Former Georgian Defence Minister David Kezerashvili is now playing a part in startup acceleration as the owner of the venture capital firm Infinity VC. While the bulk of Kezerashvili’s investments to date have been in innovative architecture and real estate, he is now diversifying by supporting various startups. We sat down with him to discuss which industries he sees as the most promising for startups today.
Fintech Driving Innovation in Business
Fintech is one of the most promising fields for startups in the current global financial environment. Kezerashvili supports burgeoning fintech ventures through Infinity VC. During our talk with Kezerashvili, he identified the areas of digital and multi-channel commerce, AI implementation, and analytics as the key areas to watch within fintech.As the way we do business rapidly changes, the need for innovation increases.Kezerashvili explains, “With the recent boom in already massive online retail, small businesses worldwide have to adapt to compete. The fintech space is rich with startups developing solutions that can be implemented at any scale, allowing any size business to compete.”Fintech also encompasses the domains of payment processing for both consumers and businesses.Kezerashvili continues, “The need for improved speed, security, and adaptability is ongoing. Startups are emerging to fill in the gaps where larger players refuse to change.”
Staggering Advancements in Mobile Technology
Mobile technology progresses rapidly in terms of hardware, software, and networking. The ongoing demand for new features and greater security makes it an industry where innovation is always in high demand. Kezerashvili says that one of the most promising areas is the integration of AI and machine learning. He believes that these technologies will find applications at every level of mobile technology and infrastructure.
AI will someday soon improve the user experience of mobile technology by reducing the gap between users and their devices.
Kezerashvili tells us, “Many of the current roadblocks for mobile integration are the result of the user-technology interface. Startups are beginning to solve this problem.”Every device must provide a mechanism for translating user intention into instructions that a device can follow. AI and machine learning are already beginning to develop the capacity to accept instructions in plain speech, and startups are pushing this even further.
Adapting to the Modern Video Landscape
Infinity VC has invested in several video technology startups. The landscape for video content is already significantly different from what it was ten years ago, and Kezerashvili says that there’s no reason to believe this progress will stop.Today, startups are developing new solutions in video production and delivery. Innovative new applications for integrating augmented and virtual reality are adding new layers to entertainment experiences. Startups are currently positioned to rapidly expand the market for these technologies, and Kezerashvili seeks to accelerate that progress.Beyond production and experience, a complex industry provides the architecture and technology for video distribution. Streaming services are the latest widespread novelty, but startups are developing new methods for distributing content. Kezerashvili believes that the service delivery platforms of tomorrow could be as different compared to current streaming as streaming is compared to cable TV.
Investing in Innovation
Kezerashvili has been a venture capitalist in some capacity for decades. We asked him why startups have become a significant part of his investments now instead of earlier.He tells us, “Recent global market trends have highlighted the need for continuous innovation across all industries. Investing solely in large, stable companies simply isn’t the way to go anymore.”
Investing in innovation provides improvements at every point of the value chain. These organizations are creating something genuinely new that opens up new opportunities for many other organizations as well. The propagation of value from truly innovative startups influences productivity and advancement across the board.Kezerashvili also discussed the current macroeconomic trends of the high national debt in most countries and low-interest rates. These factors spur on investors of all types, as returns outweigh the cost of borrowing. However, if interest rates were to increase dramatically, the trend would reverse. This phenomenon would affect people of all walks of life, as the cost of carrying national debt will lead to increased taxes for all.The proper way to mitigate this risk is by investing in innovation. Kezerashvili says that the contributions of successful startups generate real value at every level. Investors have their returns, the company has their profits, and the increase in employment leads to both more spending power for consumers and tax income for governments.“The strategy of investing in innovative new startups is one in which everybody wins. Investing in innovation is profitable in both the long and short term while maintaining a higher degree of social accountability and economic responsibility.” – David Kezerashvili