Investing in the Future of Work
The future of work is rapidly evolving, driven by advances in technology, changes in demographics, and shifts in the global economy. These changes are constantly shaping the way that we work, live, and interact with one another, and are creating new opportunities for businesses, entrepreneurs, and investors.
As an investor in the future of work space, I’m focused on identifying trends early, finding founders who are building unique solutions, and putting capital + support behind them. At VITALIZE we call it the “work-tech revolution” — we’re looking to invest in software that completely redefines existing workflows and leverages data science + a people-first approach to do so.
Here are the five work-tech revolution trends that I’m most excited about in 2023:
1. Remote work + virtual collaboration
Stating the obvious here. Remote work was largely a result of the pandemic, and it comes as no surprise that this trend is likely to continue as companies realize the benefits of remote work, such as cost savings, increased productivity, and employee satisfaction. As a result, there will be a need for virtual and augmented reality to enhance remote gatherings (like NOWHERE) and tools designed to increase productivity (like Murmur, Balloon, and Gated).
2. Next gen recruiting + hiring solutions
Along with a remote workforce comes changes in the ways that recruiting and hiring are done. We will start to see more tools to automate initial candidate screening (like Squarepeg) and gamified solutions for job seekers to visualize potential roles (like Zeit). There will be an increased need for technologies designed to make the hiring process more efficient and effective by automating repetitive tasks, providing more data-driven decision-making, and improving the candidate experience.
3. Gig/freelance economy
With the advent of powerful communication and collaboration tools, it is now possible for people to work from anywhere in the world and for businesses to tap into a global talent pool. The gig economy will continue to grow as more people seek autonomous work arrangements (like Groundfloor) and side hustles given the array of new opportunities with flexible hours. As a result of the growth of the gig economy, there will be an increased need for gig-focused hiring solutions (like Vaqat) and platforms that streamline administrative tasks such as taxes and bookkeeping specifically for freelancers (like Workmade).
4. Lifelong learning + team building
As the pace of technological change continues to accelerate, lifelong learning will become increasingly important in order to stay relevant in the workforce. We will see an increased importance placed on digital skills and a re-emphasis on soft skills which can easily get lost in remote work (tools like Virtual Sapiens tackle this). We will also see an emphasis on team building solutions (like Sparkwise) given the physical distance created by remote work.
5. Employee well-being + mental health
One potential downside of remote work is the tendency to put in more hours as workers have no separation between work and home, often leading to burnout. Companies will have to place an increased focus on employee well-being and mental health as they recognize the importance of a healthy and happy workforce to the bottom line. This will lead to more emphasis on mental health support and employee benefit resources designed to support specific subsets of employees (like Suma Wealth and Weecare).
Overall, I continue to be bullish on the future of work space as it is ripe with innovative companies that are shaping the way that we work, live, and interact with one another. There are many founders who are working hard to develop solutions that are in line with the changing needs of the workforce. Founders — keep up the great work — you are doing good for the economy and the world at large!
