Enterprise opportunities abound in 2021
By: - Microsoft S Venture Fund
Tags: Predictions, Microsoft, VC, 2021, Venture Capital

M12’s predictions for the new year

By Nagraj Kashyap

Back in April, Microsoft CEO Satya Nadella noted that the pace of enterprise tech adoption had accelerated: “We’ve seen two years’ worth of digital transformation in two months.” Whether it was shoring up your team’s WFH collaboration capabilities or increasing the number of remote happy hours on your calendar, COVID-19 has fundamentally upended traditional ways of communicating, transacting, and passing the time — all at record speed.

The rhythm of business in venture has also quickened its pace. Like most other VCs, we made our first investments in founders who we hadn’t met in-person this year. And that virtual relationship-building has allowed us to start investing in new geographies. We’ve been energized by the opportunity to identify the best entrepreneurs, globally, reaching far outside the 50-mile radius around our office locations.

2020 has also set a new standard for engagement with our portfolio companies. We’ve participated in increasingly active group texts with other board members, and we’ve dialed into more frequent board meetings and ad hoc calls. We’re happy to provide just-in-time guidance, instead of holding big decision-making conversations exclusively at quarterly, in-person board meetings — sometimes, time zones and a flight away. We’ve always prioritized open lines of communication with the founders in our portfolio and appreciate the widening aperture on their day-to-day.

While we’re excited about some of these new norms, we’d be remiss to ignore that 2020 has been a uniquely challenging time. COVID has claimed over one million lives globally, and has left countless others out of work, separated from family, or juggling childcare in addition to job commitments. But for the most part, the technology sector has been spared the brunt of the pandemic’s destruction; remote work and quarantine life has increased the demand for communication and collaboration technology. Many tech sector jobs have easily transitioned to the home office as well. It is a privilege to reflect on this year, to take note of the things we need to do better, and to dream about what’s to come. Another year will usher in a new wave of business needs and tech advancements. We’re excited to witness the innovation and to meet the brilliant founders behind the tech. Here’s what we’re anticipating in 2021:

“The Great Reintegration” — The initial shift to working from home looked similar for most information workers: commuting just steps from their bedrooms to kick off the work day. Ten months into this way of life, some people have moved to new cities, states, or even different countries — oftentimes away from their workplace headquarters. As the first vaccines are administered, in-person work environments are back on the horizon, but expectations have fundamentally shifted toward flexibility. The productivity and communication tools we’ve leveraged for an entirely-remote team won’t necessarily be the right solutions for a hybrid environment — where some people are in the office all the time, some drop by every so often, and still others never set foot. The “bounce back” will necessitate new communication and collaboration solutions to maintain productivity when we’re not all in the same conference room or on the same video conference.

The opportunity for 2021: B2B software that enables a productive and collaborative hybrid workplace