You're eyeing venture capital opportunities. How can you spot the next big growth sector?

Some of the softer aspects which can help spot emerging opportunities are Cultivate & maintain broad networks across entrepreneurs, industry leaders, other VCs, and academia. Build a global perspective as technology growth sectors can emerge anywhere in the world. Therefore, keeping a global perspective and understanding of international markets is important. The technology industry changes rapidly, and as such, investors need to be able to adapt quickly. Staying agile allows you to shift your focus and resources as new growth sectors emerge Participate and engage actively with the breeding centers of innovation such as startup incubators, accelerators, and research centers, where many such potential opportunities are often envisioned

Be two years earlier than other investors. Look beyond the hype and identify emerging trends. Don't chase headlines; significant media attention means the sector has become "hot", valuations are already inflated, increasing risk and likely diminishing returns, if not zero returns if that sector hits the "trough of disillusionment". Instead, develop a contrarian view based on your in-depth research. Challenge conventional wisdom and create a unique perspective on the future. Identify overlooked opportunities, backcast to find what's missing, and seek out entrepreneurs addressing these gaps. Continuously question others’ (and your) assumptions and conduct rigorous and thorough research to uncover hidden potential.

You don’t take bets based on the short term; rather, you take bets based on the long term, keeping in mind the overall trend and various macro factors in picture. Also, there is no one set universal rule to select the best sector; it’s quite subjective to the country. For example, in a country like India, where a few years ago the focus was on poverty eradication and infrastructure, sustainability and going green were not priorities. At the same time, in the U.S., sustainability was a major concern. Crypto became a hit in the USA because investors and retail were more risk-tolerant, however, the opposite is true in India. Identifying your Total Addressable Market (TAM) and its growth rate, and ‘MAKE IT BIG’ potential is also vital.

If there is one thing that history has taught us about identifying the next big growth sector, it is this : Don't look within the sector/segment. Ex. The move from FB to instagram started due to better cameras on mobiles and not because FB was bad / not allwowing the feature to add photos. Two time-tested approaches to identify indicators of The Next Big Thing are: 1. Inside-Out: Look at an industry that hasn't innovated for long and study the business models of companies pushing to make a difference (Ex. Urban Transport & Uber) 2. Outside-In: Look at Products & Services where there's a surge of innovation and evaluate how close they are to becoming mainstream (Ex. Drones & Logistics, Defence, Monitoring & Analytics, Maintenance etc).

VC business for me is nothing different than any other sales job. You got to keep your eyes and ears open to find the next big thing. It all depends on the sector your firm is focused on. I personally would spend a lot of time on LinkedIn and other social media to find the next big thing. We have networking sessions, connections, conferences and so on. Also be cautious what you see is always not true, so pick and choose wisely.

Technological advancement disrupts an entire industry. Just look at Ola and Uber. They didn’t just improve ride-sharing; they transformed it. Similarly, Amazon started as a bookstore and is now an e-commerce giant. Once you build up great tech, it’s mostly about incremental innovation, and you can reap the benefits from it. With things going global and tech-driven, these innovations—solid innovations—are becoming game changers. For example, everyone must be aware of carpooling. A startup is actually doing server pooling, and that’s their business model. Isn’t it interesting?

Busque ir e se conectar aos principais pontos de invoca??es dos mercados, esse ambiente irá trazer bons insides, esteja atento a isso e aproveite de forma a antecipar esses momentos

To address consumer behaviour, it’s vital to consider the demographics of the country, identify your TAM, and understand what drives their preferences and behaviour in the long term.Let’s take India as an example.We have a majority of the population in the young age group. With the shift in consumer behavior and the increase in consumerism, trends are changing. For example,Mokobara?identified the needs of Gen Z and surpassed year-old reliable brands like Safari and American Tourister. A lot of consumer brands have become a hit with Shark Tank becoming mainstream, and spending capacity increasing, which was not the case 5 years ago. Ten years ago, sustainability and veganism weren't major concerns in India, but now they're growing markets.

Consumer behavior is like a compass—it shows you where demand is headed. I’ve often found that paying attention to shifts in how people spend their money can reveal untapped markets. Whether it’s the rise of eco-conscious shopping or the demand for faster delivery, understanding what consumers want—and how that’s changing—can guide you toward the next big opportunity. The key is staying curious and listening to the subtle shifts in consumer preferences.

It is true that founders of startups would prioritise innovation over compliance. At the same time, as regulation catches up, it is crucial to anticipate regulatory changes and have the ability to pivot innovation in business model. Sometimes a “slow” and systematic approach can help scale businesses. Also, the mindset that it is day 1 when there is entry to a new business line or new geography is crucial. The “success” in one business line or in one country does not guarantee the success in new business line or in new geography. Hence, regular reading and understanding of regulations should be part of DNA of start up leadership while assessing the priorities for medium term.

A supportive regulatory environment can significantly boost a sector’s growth. Monitoring changes in government policies or new regulations can help identify industries that are poised for expansion. For instance, sectors like healthcare, fintech, or green energy can experience rapid growth when aligned with favorable regulatory changes. Understanding the landscape gives you an early advantage.

Interest rates are the most important factor when it comes to driving investment decisions, be it inter country, be it startups. At the end of the day, it all boils down to cost of capital, and return on investment. A VC is responsible to give returns to its investors, the same way a startup is looking at growing the business to make its investors happy about the return prospects. The world looks for stability at the end of the day. Geo-Political landscape, intercountry equations, interest rates. If they are stable, money flows comparatively freely. If unstable, people generally choose to hold their investments.

The world is interconnected, and I’ve realized that understanding global dynamics is essential for spotting growth sectors. Trade policies, geopolitical shifts, and economic changes across borders often set the stage for new market opportunities. What happens in one part of the world can create a ripple effect that opens up new ventures elsewhere. It’s all about recognizing how global shifts can align with local trends to drive growth

90% startups fail, so as a VC, you are banking on that one startup which can offset your losses against the other 9. So, you are making your bets based on probability of success. The factors can be the team, their capability of making the startup big, the product-market fit, and the right product at the right time, the size of the market for this product.