https://a16z.com/2022/12/15/big-ideas-in-tech-2023/
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This time of year, the floodgates open to a deluge of best-of lists and end-of-year recaps. But we at a16z have always been more interested in what’s to come. We asked dozens of partners across the firm to spotlight one big idea that startups in their fields will tackle in 2023. From entertainment franchise games to the precision delivery of medicines, small modular reactors to loads of AI applications, here are 40+ builder-worthy pursuits for the year ahead, according to the a16z team.
Social commerce, discovery commerce, video commerce — these trends are inevitable, and 2023 will be the year it all becomes obvious. Social platforms will become a natural place for product discovery. And platforms will seek to ease the friction between inspiration → purchase intent → and completed purchase. Whether short-form, long-form, or livestream, video is a fantastic way to sell things and teach consumers about a product’s value proposition. This will birth an entirely new ecosystem where anyone can become a seller, and new companies can help everyday creators curate and sell products and services. —Connie Chan, general partner, consumer team (@conniechan)
Almost 40% of Americans switched jobs during Covid, and many more are still looking to make a career change. Major industries are facing unprecedented labor shortages. Much of this turmoil has been absorbed by sectors that are operating with legacy tech, such as construction, manufacturing, hospitality, retail, healthcare, and education.
This creates a massive opportunity for companies that change the way companies hire and retain talent. For businesses, being able to source and vet qualified candidates is more important than ever, especially as most industries don’t have a LinkedIn equivalent. It’s likely that in 2023, a new wave of labor marketplaces will help employees build identity and reputation, connect directly with hiring managers, and get training and resources to build their careers. —Olivia Moore, partner, consumer team (@omooretweets)
It often takes a user-first mentality for consumers to adopt the latest tech at scale — with AR, for example, users picked up on Pokémon Go and Dog Ear face filters. These products often look like toys, initially: imagine how an AR expert may have felt to learn that one of the most-used applications of the technology would be to put beautification lenses on selfies! The same goes for AI. So many of the latest breakthroughs in AI are about enabling transformation between modalities, whether speech-to-text, text-to-images, or images-to-videos. People are just starting to play around with these technologies. In 2023, AI-focused founders will put user behaviors and psychology first to create products that can be readily embraced by everyday consumers. —Bryan Kim, partner, consumer team (@kirbyman01)
Ray Oldenburg coined the term “third place,” places that host “regular, voluntary, informal, and happily anticipated gatherings” outside of home or work. These used to be IRL community-gathering spots such as bars, coffee shops, churches, gyms, and clubs… But remote and hybrid work, as well as this generation’s natively digital habits, have given way to an online-first era. So many interactions and first encounters occur online, whether it’s over Zoom or meeting a like-minded friend with similar interests over Twitter or TikTok, or in a Discord group or a game. What are the next generation of tools and platforms that are built to serve consumers, community builders, and creators in the post-Covid, hybrid world? How can new technology such as generative AI create user experiences that facilitate deeper discussions and relationship building (between real humans — not bots!)? —Anne Lee Skates, partner, consumer team (@anneleeskates)
Next year will be the year of inventory in consumer commerce. The internet has enabled a new generation of entrepreneurs that are selling products on ecommerce sites and social/live-streaming platforms like Whatnot or TikTok. Many of them excel at building an audience, engaging their viewers, and driving sales, but they don’t want to be financing, manufacturing, and shipping their own products.
In 2023, I think we’ll see a wave of companies that enable sellers to tap into alternative sources of inventory. The sky’s the limit: that could be new or used products, products sourced directly from manufacturers, or products routed from retailers with overstock/returns. There’s an enormous opportunity to build the “pipes” that connect sellers with this inventory. Bonus points if you allow consumers to score discounts or access inventory that they wouldn’t normally be able to get their hands on.—Justine Moore, partner, consumer team (@venturetwins)
Craigslist has long been the leading digital classifieds site in the U.S., but they stopped innovating (and stopped growing) many years ago. Now creative entrepreneurs are systematically ripping categories out of the platform by providing superior user experiences — think Airbnb for room-sharing and Uber/Lyft for ride-sharing. But a few ripe categories remain to be ripped, including blue-collar jobs, home services, and rentals. —Jeff Jordan, general partner, consumer team (@jeff_jordan)