Welcome to your round up of some of the past week’s most interesting surveys, statistics and reports relevant to those involved in the UK tech industry.
This week, we have statistics relating to HealthTech investment trends, corporate innovation, AdTech and MarTech deals, AI adoption and automation in the workforce.
Silicon Valley Bank released its “European Trends in Healthcare Investments 2017” report, which revealed that although down since 2015, venture investments in healthcare are now at a historically high level.
Deal sizes have increased significantly since 2014, with the average deal size for biopharma reaching $16.4m in 2016. Similarly, the average investment size in HealthTech devices in 2016 was $8.8m, up $2.8m since 2014, and the average amount invested in diagnostics, health information technology and tools also reached $8.8m.
Geographically, UK healthcare businesses came out on top in Europe for investment activity, raising $1.5bn across 2015 and 2016. This was followed by Switzerland ($0.9bn), the Netherlands ($0.5bn), Germany ($0.5bn) and France ($0.4bn).
“Collaborate to innovate”, a report by Startupbootcamp, has discovered 53% of the accelerator’s alumni feel corporates need to do more to innovate and disrupt their own markets.
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However, the research also revealed 70% of Startupbootcamp alumni have already collaborated successfully with corporates. The findings also highlighted 45% of startups wish to collaborate so that they can sell their business and 30% see corporates as the customer for their tech solution.
Despite it being in their interests to work with startups, however, 70% of startup alumni experience a long and complicated internal process to work with corporates.
Andy Shannon, head of Startupbootcamp Global, commented: “It’s easy to see the benefits of corporate and startup collaboration, but despite the mutual understanding between both parties, there are obvious challenges that stand in the way.
“Our findings emphasise these current obstacles, highlighting how developing relevant relationships is more important than ever in order to overcome these issues and collaborate to innovate within often entrenched industries,” he added.
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AdTech & MarTech
According to figures by Results International, the combined total of AdTech and MarTech deals completed in 2016 stands at 412.
Broken down, the figure of AdTech deals completed fell from 155 in 2015 to 121 in 2016. However, MarTech deal volume rose from 256 in 2015 to 291 in 2016.
The total disclosed investment value in 2016 was $24.18bn, an increase of $9.6bn year on year. The disclosed deal value of AdTech deals rose by $6.52bn to $15.22bn in 2016, and MarTech deal value grew from $5.7bn in 2015 to $8.96bn in 2016.
Julie Langley, partner at Results International, commented: “There’s an increasingly diverse range of buyers looking to make acquisitions in the space. It’s still a fragmented market but consolidating at pace. As AdTech and MarTech technologies have matured, they’ve become more attractive to both PE firms and to Asian acquirers that wish to invest in scaled businesses in the West.”
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The UK attracted 8% of global investment for AdTech and 7% for MarTech, up from 6% in both sectors in 2015.
Langley added: “Looking to 2017, we expect deal activity to remain robust, driven by an ever-expanding buyer universe and the continued rapid innovation in the way we all consume media and research and make purchases. Hot areas are likely to include AI and machine learning, virtual reality, user generated content, augmented reality, discovery and data and predictive analytics.”
A survey of 1,600 senior business decision makers across the world by Infosys discovered 76% of respondents believe AI is fundamental to the success of their organisation’s strategy.
However, the report, titled “Amplifying Human Potential: Towards Purposeful Artificial Intelligence”, also revealed just 10% of decision makers believe they are currently maximising the potential of AI in business.
The majority of those polled plan to change this though, with 85% claiming they will train employees about the benefits of using AI, and 80% said, when replacing roles with AI technologies, they will retrain or redeploy displaced employees.
Additionally, those who have deployed or intend to deploy AI technologies in their organisation expect to see a 39% average increase in revenue by 2020, alongside a 37% reduction in costs.
Sandeep Dadlani, president & head of Americas at Infosys, commented: “Artificial intelligence adoption is on the rise and we are excited to see the investments in AI that businesses are gradually making to derive meaningful and creative change. The achievements are remarkable and the opportunities AI is bringing forth are vast.
“As we are seeing AI mature and gain momentum, our research shows that the next four years will witness further spikes in interest, and general bullishness about the significant value and benefits that can be obtained through AI adoption. As an industry therefore, we must take necessary steps to ensure AI is developed morally and ethically across every part of society and that employees are actively engaged and provided with the necessary training to be central to this journey,” he added.
Accenture Strategy’s report, “Harnessing Revolution: Creating the Future Workforce”, has shown 84% of working people surveyed are optimistic about the impact of digital technology on their job.
Some 74% also think robotics, data analytics and artificial intelligence will help them be more efficient, while 73% think the technologies will enable them to learn news skills. 66% also believe technology will help improve the quality of their work.
Additionally, 87% of the workers surveyed across 10 countries expect parts of their job to become automated within the next 5 years. Of those who expect automation, 80% anticipate more opportunities than challenges in how automation will impact their work experiences.
Ellyn Shook, chief leadership and human resources officer at Accenture, commented: “Paradoxically, the truly human skills, from leadership to creativity, will remain highly relevant and winning organisations will strike the right balance — leveraging the best of technology to elevate, not eliminate their people.
“Not only are workers optimistic, but they understand they must learn new skills. Digital can accelerate learning by embedding training seamlessly into daily work — so learning becomes a way of life — helping workers and organisations remain relevant,” she added.