Technology, Media & Telecom

We invest in early stage technology companies that are at the forefront of a transformative opportunity for growth. Finbridge invests in post-seed and Series A stage technology companies.

Driven by growth in software and IT services revenue, worldwide IT spending is forecast to reach $3.5 trillion in 2017, up 2.9 percent from 2016 estimated spending of $3.4 trillion, according to the latest forecast by Gartner, Inc. The bright spot for the IT industry has been the software and IT services segments. Software spending is projected to grow 6 percent in 2016, and it will grow another 7.2 percent in 2017 to total $357 billion. IT services spending is on pace to grow 3.9 percent in 2016 to reach $900 billion, and increase 4.8 percent in 2017 to reach $943 billion.

Top-level industry forecasts set the stage for an examination of the underlying factors contributing to growth. At a category level, IT industry executives are most bullish on IT services. A trend that began many years ago, the everything-as-a-service phenomena has maintained its momentum. While certain facets of technology are becoming easier to manage, the overall complexity of managing technology ecosystems often exceeds the capabilities of many customer segments, especially small businesses. With traditional managed services providers embracing new opportunities in areas such as managed security, data, and IoT, hitting the upside of the forecast is not unrealistic.

Straddling the hardware, software, IT services, and telecom categories is cloud computing. Expectations are high for another year of robust growth for cloud applications and cloud infrastructure.

Growth Opportunities 2017-2021

• So-called “exponential” technologies including robotics, virtual and augmented reality (VR) (AR), 3-D printing, and artificial intelligence (AI) are opening up significant areas of opportunity.

• Cognitive technologies such as machine learning, natural language processing, and speech and pattern recognition are being embedded in software applications, imbuing big data with superior capabilities.

• Blockchain, the foundation for the digital currency bitcoin, has enormous implications not only for the financial services industry, but for any company that manages a large amount of transaction data.

• The Internet of Things has only just begun to reveal its promise.

• “Anything as a service” offerings; ones that allow usage-based consumption, are likely to emerge.

• Cybersecurity products and services are another area with a b right future.