Opportunities In Rapidly Evolving Technology – How To Get Involved As An Investor

Technology continues to advance at a blistering pace, bringing innovative new products, platforms, and capabilities. From artificial intelligence to 5G networks, technology is transforming society and business through outsourcing. The companies developing cutting-edge tech could see exponential growth. 

As an investor, these rapidly evolving technologies present potential opportunities to generate returns. However, with new innovations also comes uncertainty and risk. This article explores different emerging tech areas and how investors can capitalise on these while exercising caution. 

EIS Investments in Early-Stage Tech 

One approach is investing in early-stage tech companies through the Enterprise Investment Scheme (EIS). This provides access to pioneering startups, and tax incentives like 30% tax relief to offset risk. 

An EIS fund allows you to invest in a portfolio of young technology companies pursuing innovations in sectors like fintech, digital health, robotics, and more. The diversification mitigates exposure to any single startup’s volatility. 

Backing new tech through EIS provides potential for outsized returns if the companies experience growth. The tax reliefs help buffer downside. But appropriate due diligence is still essential. 

Artificial Intelligence Expanding 

Artificial intelligence (AI) is proliferating across industries. Technologies like machine learning, neural networks, and natural language processing are being integrated in everything from banking to manufacturing. 

According to projections, global expenditure on AI could reach $97 billion by 2023. With wide applications, AI presents many investment opportunities. Stocks focused on developing AI technologies provide direct exposure. AI is also being adopted into virtually every tech sector, so broader tech investments gain exposure too.

Just be wary of overextending into AI alone, as with any emerging technology. Maintain portfolio balance and hedge bets. 

Metaverse Creating a New Digital World 

The metaverse concept envisions a shared virtual space using VR/AR technologies. Tech giants are racing to develop metaverse platforms and ecosystems. Major players include Meta, Microsoft, Apple and Google. 

Exposure can be gained by investing directly in these tech leaders. Another approach is purchasing assets like cryptocurrencies, NFTs and virtual real estate within actual metaverse environments. This provides more direct exposure but also higher risk on unproven digital assets. 

While still largely conceptual, the possibilities of the metaverse have generated tremendous buzz. But cautious optimism is recommended until real-world functionality is proven. 

5G Connectivity 

5G networks are the next evolution in wireless technology, enabling exponentially faster data speeds and reduced latency. As 5G proliferates, it could transform productivity across industries through innovations like smart factories, autonomous vehicles, and telehealth. 

Major telecom companies are building out 5G networks in many markets globally. Related infrastructure providers are also benefiting. 

How To Get Involved As An Investor 

With any new technology, thorough research is warranted. Evaluate the real-world utility and commercial viability of emerging innovations. Weigh the risks and invest prudently in line with your risk tolerance. 

Consider EIS opportunities as a means of accessing early-stage tech companies, as here investors can diversify their portfolios while benefiting from a host of tax incentives and reliefs, minimising the associated risks.