The global venture capital market is continuously gaining momentum thanks to the latest trends. Startups are leading the way of change in technology-driven and traditional markets. As an investor, you are familiar with the recent uproar in the venture capital market. From new technology to the largest deals ever made, this past year was one for the books. To ensure that you can keep up with the ever-growing market and continue to profit, you need to stay up-to-date with the current movements. Read on to learn about the latest venture capital trends to watch this year.

Leaning Away From Unicorns

One of the most shocking ventures capital trends to watch this year is a drift away from investing in unicorns. If a business is considered a “unicorn”, it is worth at least $1 billion. In the past, investors thrived to put their money into such companies with the hope of receiving the most money back in return. However, investors today are drifting toward promising businesses that improve already-invented products. Many venture capital firms fail to beat their competitors to unicorn companies. Thus, they receive no returns because they spent too much time chasing the possibility of 10x returns. Many unicorn companies end up falling financially, leaving their investors with little return as well. For these reasons, investors are predicted to fund unicorns less this year.

Direct Listing in the Stock Exchange

Another latest venture capital trend to watch this year is direct listings. After a well-known company went against the current IPO standards and filed with a direct listing, other popular businesses are considering doing the same. Such businesses let the market decide on fair stock prices, unlike the Snapchat IP euphoria. The venture capitalist market received surprising results through this new process. Venture capitalists who invested in the business that direct listed made large profits. Their share prices grew much more than expected. Furthermore, there was not any dilution from institutional investors or banks. This coming year, more businesses are predicted to file with direct listings. Consider investing in them to keep up with positive venture capital trends.

Large Corporations Get Creative With Funding

If you are interested in corporate venture capital funding trends, you will be pleased to read that large corporation involvement is growing in the market. Many successful corporations use business funding programs. These programs require support from smaller businesses. If done well, you can turn a traditional funding opportunity into an advantageous business partnership. Because more and more of these partnerships are benefiting both parties, more large corporations want to get involved with venture capital ventures. Consider funding growing corporations this year.

Robotics and Drones Leading the Way

Robotics and drones are also increasingly affecting the venture capital market. Right now, such technology companies are receiving investments on a monthly basis. These robotics and drones businesses do more than create physical devices. They also build automation software that generates a lot of cash flow for both business owners and investors. To make the most of an investment in this area, former Angellist partner Lee Jacobs recommends, “ Since these areas are so new, venture capitalists should evaluate each startup pitch as a unique opportunity and build the business case from the bottoms up.” Since this industry is still in its early stages, there are certainly many different types of startups and business models coming up. Combined with increasing consumer demand for these products, you should consider investing in robotics and drones companies this year.

More Startup Exits

Finally, one of the latest venture capital trends to pay attention to is an increase in startup exiting. In previous years, this was not thought because startup exiting was continuously declining. Because of changes in federal regulation and taxation, experts predict that the previous trend will reverse to increasing startup exiting. If you have found yourself stuck in life-cycles that lasted longer than you planned, you could benefit from this new trend. With the right startup exit, you gain more new investment opportunities with other startups. Keep your eye out for this venture capital trend this year.

Since the venture capital market is always changing, you need to stay up-to-date on the latest trends in order to profit. Pay attention to the prospective decrease in unicorn investments. The direct listing could be increasing this year after a well-known company’s positive outcome. Larger corporations are getting more involved in venture capital funding. The desire for robotic and drone technology is increasing, making tech companies great investment prospects. Lastly, startup exit rates are rising and creating more opportunities for investors. Watch these latest venture capital trends this year.