OpenOcean Capital

About OpenOcean Capital

“The norm for too long has been to totally disregard data efficiency and crunch as much data as possible when feeding algorithms Ongoing concerns around the cost of energy and the environment will necessitate a change in this regard, towards focusing on doing more with less data This will be a difficult transition for many, making them rethink assumptions relating to Moore’s law and come up with totally new strategies and ways of thinking about data This dataflow optimization will initially spread across segments of the market concerned with high-throughput technologies, such as the Internet of Things and enterprise automation, before it reaches the remaining, less specialized businesses ”

Tom Henriksson, General Partner: Enterprise automation – Navigating Cost-Saving and Reskilling of Workforce

“As we move into 2023, it is expected that investments in enterprise automation will continue to rise as companies focus on cost-saving efforts in a challenging macro environment The ongoing white-collar labor shortages and difficulties in retaining talent post-COVID-19 will further accelerate automation efforts to reduce repetitive and non-meaningful tasks However, this also means that companies will need to invest in reskilling their current workforce to ensure they have the necessary skills to adapt to the changing job market

Big automation platforms will also play a significant role in the future of enterprise automation, providing a more comprehensive offering of integrated solutions However, increased transparency of current processes is still needed to enable AI-driven orchestration of work In this area, startups are expected to drive real innovation and disruption

Despite the advancements in big “general” automation platforms, vertical and function-specific automation solutions will be necessary for high-value use cases These include industries such as integrated supply chains, manufacturing and healthcare To remain competitive in these sectors, companies must invest in solutions tailored to meet their specific needs ”

Ekaterina Almasque, General Partner: Artificial Intelligence – Scaling for Multiple Use Cases and Addressing Trust and Inclusivity

“In 2022, we saw that AI is certainly ready to be scaled, but at the same time, we have not seen this transition happen at the expected speed

“In 2023, the success of AI will depend on its ability to serve multiple use cases rather than just isolated ones For AI to be widely adopted and drive real-world decisions, trust in the technology must be enhanced This can be achieved through increased funding to establish credibility Without credibility, AI will not be commercially viable regardless of how ready it is Therefore, funding is crucial in making AI more trustworthy, reliable, and ready for the market

One concerning aspect of AI in 2023 is that, in its current format, compute costs are not sustainable AI models are going to accelerate and grow exponentially Whilst this sounds positive, it will also involve immense costs On top of this, huge amounts of data will be needed to train the models and enhance their reliability For many organisations, this will be unobtainable and only hyper scalers can survive

AI also faces societal pushback with respect to inclusivity, bias, and representative design There is a risk that AI will be exposed for not being designed with inclusivity in mind and subsequently, there will be a lot more noise surrounding its lack of representation For example, with so many different languages globally, there is a risk that AI will not incorporate all of these ”

Nina Gunell, Investment Associate: ESG – Businesses Under Scrutiny: Proving Environmental Impact

“Consumers and investors are becoming more aware of the impact businesses have on the environment and demanding transparency and accountability Thus, businesses will receive more scrutiny than ever before, particularly when it comes to claims around environmental impact or efficiency savings The companies that thrive will be those with hard data to prove that they can help reduce energy consumption or make more efficient use of hardware resources There is no more room for green-washing or cherry-picking statistics to exaggerate positive environmental impacts: in 2023, it’s time to put up or shut up ”

Naureen Zahid, Investor Relations Director: Investment – Prioritizing Experienced Specialist Managers

“Generalist Managers have historically been of preference to investors allocating capital to VC as this approach has given them exposure to various markets, segments and verticals, whilst providing good diversification and risk management With the volatility of 2022 and recessionary headwinds looming, there is a shifting mindset for investors who are now likely seeking to focus more on specialist managers to mitigate the forecasted idiosyncratic, recessionary and inflationary risks and to protect their portfolios from the expected downside

As LPs look to make allocations in 2023 there is likely to be a strong preference for highly experienced and specialist managers with a long-standing, strong and proven track record in the market segments and technologies in which they are investing This experience will allow more granular and technical due diligence, enabling the specialist managers to select the companies for investment which are best equipped to survive and grow in the uncertain and volatile economic conditions forecasted ahead ‍ From their prior experience, specialist and activist GPs will make impactful partners in helping their portfolio companies to strategize, differentiate, position, scale, and grow in their respective fields, geographies and verticals With many specialist GPs, their operational experience and/or existing networks and relationships with industry advisors, experts and leaders within their specialisms can be leveraged to ensure the success of their investments This will ultimately drive a more sustainable investment approach, with reduced risk and high potential upsides for all involved ”