In the dynamic world of startups, trends come and go, but some leave a lasting impact that shapes the future of the industry. Here, we delve into five key trends that are currently shaping the startup ecosystem, as highlighted in the July 2023 edition of the Family Office Growth Newsletter.
1. AI and Blockchain Convergence
Kaito (Kaito.ai)
The first trend is the convergence of AI and blockchain technology. A prime example of this is Kaito, an AI-powered search engine for the crypto industry. This past June, Kaito raised $5.5 million in its Series A round.
Kaito leverages large language models (LLMs) to search indexed information across numerous private silos and data on the blockchain, making it a valuable tool for the crypto community. This trend suggests a future where AI and blockchain work in tandem to create more secure, efficient, and transparent solutions.
2. AI in Legal Tech
Parrot (Parrot.us)
The second trend is the growing application of AI in legal tech. Parrot, a technology-based court reporting firm, uses AI trained on legal and insurance terminology to deliver highly accurate transcripts immediately after a deposition. The company recently raised $11 million in their series A financing round.
Parrot’s stenographic AI software is helping law firms and insurance companies accomplish more for their clients and driving important efficiencies for the justice system. This not only speeds up legal processes but reveals a demand for startups to develop AI-powered solutions for other areas of law.
3. Augmented Reality in Healthcare
MediVis (MediVis.com)
The third trend is the use of augmented reality, or AR, in healthcare. MediVis, a startup that raised $20 million for its groundbreaking use of AR in surgical procedures, provides surgeons with a real-time, 3D map of the patient’s body during surgery.
Their AR technology is compatible with MRI and CT scans, and provides highly accurate visuals, enhancing surgical precision across specialties. This trend points to a future where AR becomes a standard tool in healthcare, improving outcomes and patient safety.
4. AI for Wildfire Detection
Pano AI (Pano.AI)
The fourth trend is the use of AI for environmental protection.
Pano AI, specializing in AI-driven wildfire detection, alerts professionals within minutes of detecting smoke or fires. The company raised $17 million in an extension of their Series A round from last year.
The technology scans landscapes for smoke or fires and alerts professionals within minutes. Pano AI currently surveilles over 6 million acres across the U.S., and also operates in New South Wales and Queensland, Australia. Their customers include power utilities, private landowners, and government firefighting agencies.
Amidst increasing wildfire frequency and severity, Pano AI’s solution offers rapid detection and alerts, potentially saving lives, protecting ecosystems, and enhancing firefighting efficiency. The company’s success in growing a global customer-base underscores the potential of AI in addressing environmental challenges and disaster management.
5. Family Offices in Asia
The final trend is the rapid expansion of family offices in Asia, particularly in Singapore. The growth began in mid-2020, when the Hong Kong government introduced the family office tax concession regime.
However, geopolitical tensions and the comparative allure of Singapore have led to an influx of ultra-high net worth individuals moving directly from Hong Kong to Singapore. This trend indicates a shift in the global wealth management landscape.
According to Funds Global Asia, a new venture in Singapore named Tembusu Wealth Management, aims to provide a comprehensive suite of services, including wealth planning, investment management, and family governance. This move further solidifies Singapore’s position as a leading destination for family offices.
Unpacking the Trends
These trends are driven by a combination of technological advancements, market needs, and regulatory changes. The convergence of AI and blockchain, for instance, is fueled by the growing demand for secure and efficient solutions in the crypto industry.
The application of AI in legal tech and AR in healthcare is driven by the need for more efficient and accurate processes. The use of AI for environmental protection is a response to the increasing severity of environmental challenges. Lastly, the expansion of family offices in Asia is influenced by regulatory changes and the strategic importance of Asia in global finance.
For more insights into these trends and other developments in the startup ecosystem, check out the Family Office Growth Newsletter.