Kevin: Looking back, how would you describe 2012?
As this is a vast topic, I will narrow the response by focusing within the categories of Entrepreneurs, Industry and Investors, and by exploring three themes which emerged to affect each category in 2012 (although there are surely more that are not being addressed).
Entrepreneurs
Once again, the costs to start a company declined. Entrepreneurs were able to leverage free, open source software as well as cheap SaaS providers such as Zendesk or SimpleRelevance, along with infrastructure costs that continued to decline (i.e. AWS). This made it easier, and cheaper, to start a company than ever before.
A ubiquitous experience across multiple devices (PC to Tablet to Mobile) became the norm. As mobile devices have become an extension of one’s being (on someone virtually 24 hours a day), entrepreneurs recognized the need to deliver a seamless experience between desktop and mobile (i.e. Evernote).
Finally, consumers validated the benefits of applying a fresh approach to design, with mass adoption of AirBNB and Pinterest. Entrepreneurs shifted their focus beyond functional relevance, to visually appealing. This focus on user experience and the user interface has led to the delivery of content through aesthetically pleasing websites and mobile apps.
(Runner-up: Challenge in hiring tech talent)
Industry
The world of retail continued to be flipped on its head. Consumers were eager to purchase home goods, baby apparel, jewelry and shoes, from companies such as Fab, Zulily, and Beachmint, giving traditional bricks and mortar stores pause. The mass customer traction was rewarded with large capital raises.
Entrepreneurial innovation in mobile and cloud computing for the enterprise was another theme in 2012. From SaaS businesses like Box’s cloud share, file and sync platform to next generation data centers like IO’s modular data center design, large corporates are rapidly shifting the on-premise (and in many cases traditional web-based) solutions of old.
Finally, we have seen the rise of collaborative consumption, which is democratizing the way people exchange goods and services around the world. Now people and businesses can purchase excess inventory instantaneously, whether it be an unused home or office which could be used for short term event space (Eventup), to car sharing (RelayRides) and services (Exec).
(Runners-Up: EduTech (How will Edmodo and Khan change the classroom?), Internet Of Things, and Healthcare IT)
Investors
We saw a decrease in venture capital activity in 2012, according to the NVCA. Was this due to the new avenues for raising capital that emerged (Kickstarter and Indigogo)?
Or, perhaps due to valuations? With later stage financings, many of which were underwater post-IPO (such as Zynga), VC's certainly became more cautious of high priced, momentum financings.
Finally, government activities affected the venture investing world. Uncertainty around the presidential election and fiscal cliff persisted. Also the passing of the JOBS Act (Jumpstart Our Business Startups) paved the way for new platforms to emerge for the general public to invest in startups, by lowering the restrictions for equity investments. It is too early to tell, but while intended results may be great, the outcome may be potentially disastrous for investors and entrepreneurs alike. We will have to see how this plays out in 2013.
(Runners-Up: Seed investing and the “Series A Crunch,” Emergence of thematically/geographically focused seed-only funds, Impact of Angelist, and The clean tech asset class)
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