Talis take on venture opportunities in Cyber Security, Proptech & Insurance Tech


Cyber Security

While many segments of the technology market are driven by reducing inefficiencies, automating processes and increasing productivity, cybersecurity spending is driven by cybercrime. We have reached unrivalled levels of cyber attacks which are in turn generating a huge number of opportunities in the space:

Cyber Security is now one of the fastest growing areas of Venture Capital thanks to the billions spent on cyber-security annually and the constant stream of major hacks and leaks hitting the headlines.

The depth and breadth of the cyber security market is now so vast, the potential of identifying the next wave of start-up success becomes ever more challenging

Talis has identified several segments of the cyber security market that are poised for significant growth:

Prop-Tech

Property is one of the biggest asset classes and is considered to have one of the lowest risk profiles. Technology is now disrupting the dynamics of this industry and generating higher yields

A number of trends in property are emerging:

  • The demand for flexible working space is creating a new breed of property-companies which are pushing up property valuations they take over and providing op-co opportunities
  • Long lease rentals have been preferable due to the hassle of short-term leasing. Technology now facilitates easy, efficient and high-yield short-lease rentals
  • Technology innovation allows dis-used / rundown property to be re-purposed cheaply, without changing its use - generating high returns (Currently 500 hectares of empty or under-utilised industrial land across London alone – the equivalent to 750 football pitches)

As a result, investors are pouring money into prop-tech start-ups:

The Proptech market is now expansive: Early application of technology in property revolved around the most visible uses: automating manual processes, improving work efficiency and web-enabled marketing. Recent trends – the sharing economy, crowdfunding, uber-isation, social media and mobile are developing entire new segments within it:

The Talis team has identified several buoyant areas of the proptech market that are brimming with confidence and have a wealth of innovative startups:

Insurance-Tech

The incumbent insurance industry is rife with old, legacy, labour intensive companies

Insurance is undergoing a monumental shift –A fifth of European consumers stated they would buy banking or insurance services from companies like Facebook, Google, Amazon or Apple. (Fujitsu, 2016 survey)

Tech companies such as Google are significantly increasing their investments and partnerships in insurance, showing the desire to enter and dominate this old conservative industry

A number of key trends are driving investments into insurance tech:

  • SaaS is innovating a conservative industry by changing the way insurance companies price risk and by empowering an ongoing relationship between an insurer and insured
  • Incumbent insurers are not able to operate profitably with less than 1,000,000 policies and spend between 60 and 80 cents of each euro of premium on claims

AI was one of the most popular themes in insurance tech investment in 2016, capturing more than $500m of funds

Innovative insurance technologies are targeting different segments of the insurance value chain. Start-ups are rooted in mobile and digital but include a wide range of categories, with fundamental changes in communication, data availability, and computation

The change in the insurance industry value chain is creating a huge market opportunity: