Finding the Best Tech Investments in 2020
The technology sector is always a great place to look for the latest growth investment but what if you don’t know what you’re looking for? Probably the most important thing is to make sure understand what you invest your money in.
With this in mind, wading through the opportunities in the tech sector to find products that really deliver on the value proposition is extremely difficult. Without insider interests or a tech background, some of the innovations coming to market are almost always complex. Here we take a look at how you can find the best tech investments for 2020.
What’s the Bigger Picture?
To understand any market, you have to know its dynamics in terms of demand and supply. For example, currency markets are heavily influenced by politics, requiring a very keen political interest if you want the best chance of anticipating market movements.
Technology is an exciting space that includes trends from artificial intelligence (AI), to smartphones, blockchain, self-driving technologies, the ongoing to trend to software-as-a-service (SaaS), the Internet of Things (IoT), streaming media services, and more. It’s an area full of opportunity, but also some risk.
Growth in the tech sector is mainly driven by widespread implementation of AI solutions, designed to improve efficiencies for businesses providing a service such as banks, law firms and payment systems. In fact a whole new generation of digital banks like Revolut and Monzo has emerged to create their own segment within the tech sector.
What is the Next Trend in the Tech Sector?
The technology sector includes everything from major companies that everyone knows, to players both big and small that operate largely behind the scenes. The category is also home to emerging companies of all sizes, start-ups, and billion-dollar household brands.
In a broad sense, the category includes stocks involved with the research, creation, and distribution of technology-based goods or services. That can be everything from computers to software, televisions to websites. Hardware is the physical device – a computer, a television, a smartphone, etc. Software is the computer code and platforms that make those devices work.
One of the downsides of investing in the tech sector is that technology changes quickly, and one-time leaders can quickly fall behind, or even go out of business. In addition, promising emerging companies may make a huge splash, only to fade out quickly.
An area that is currently in much need of specialist IT solutions is the legal sector. This is mainly due to the rapid rise in compensation claims for mis-sold pensions and investments. Changes in legislation in 2019 have resulted in a deluge of people in the UK seeking to claim compensation under the government’s Financial Services Compensation Scheme.
Many small to medium law practices in the UK are not in a position to be able to process high-volume claims without help. This is where the tech sector is now stepping up and saving the day. LegalTech has consequently emerged as one of the hottest prospects for tech investment in 2020.
2020 The Year of LegalTech Adoption
Analysts predict that 2020 will be the year legal practices across the UK get serious about adopting legaltech. Firms will embark on the future of law by solidifying their choices when it comes to the tools they have adopted, and even advanced technologies they have eyed with suspicion, such as artificial intelligence and machine learning.
It is expected that law firms will accomplish this by fully leveraging what they adopted in the past. Firms know which technologies – practice management, document management, mobile tools, data analysis, etc. – and which workflow processes are critical, and understand how to interpret and leverage the analytics reported from their endeavours.
Lawthority is one of the UK’s leading LegalTech firms currently rolling out IT solutions that utilize AI to streamline legal process for high-volume enquiries such as compensation claims. Many small to medium-sized legal firms in Britain will be required to join the legaltech revolution or face being unable to fully participate in the surge of consumer activity in the segment.
In terms of finding the best opportunities for growth in the tech sector, the legal profession holds the key. Find out more about opportunities for low-cost entry into LegalTech investment by speaking with us today.