Creative and Disruptive Innovations: 2022 Data and Future Expectations

ARTICLES
February 4, 2023

We are entering an incredibly fast-paced era driven by innovation, led by artificial intelligence. Platforms delivering unique creative innovations will achieve growth that perfectly matches the concept of exponential growth. The current market value of platforms associated with “Disruptive Innovation” stands at USD 13 trillion, and it is projected to reach USD 200 trillion by 2030. This means these platforms will dominate the entire market.




We are entering an incredibly fast-paced era driven by innovation, led by artificial intelligence. Platforms delivering unique creative innovations will achieve growth that perfectly matches the concept of exponential growth. The current market value of platforms associated with “Disruptive Innovation” stands at USD 13 trillion, and it is projected to reach USD 200 trillion by 2030. This means these platforms will dominate the entire market.

At Boğaziçi Ventures, all of our investment funds are based on the strategy of investing in areas expected to grow by an average of 40% annually. Both our early-stage venture capital funds and technology equity funds target areas with a mid-term annual growth potential of around 40% in USD terms.

Key Highlights from 2022 Shaping Our 2023 Investment Strategy

  • Chat GPT: Societies have begun to feel the progress of AI. Using AI to review code has reduced developers’ coding time by 55%. While this does not eliminate the need for good developers, it allows them to work more efficiently and reduces innovation costs.

  • Design Times: Thanks to designers who effectively use AI, the time required to create a visual design dropped from 5 hours to just minutes.

  • Modeling and Design: AI-based video, character, and environment modeling are set to be major topics in 2023.

  • AI Training Costs: Over the last two years, the cost of training AI has decreased tenfold. Additionally, hardware and software costs for AI are expected to drop by 70% annually.

  • Communication Satellites: A record number of communication satellites were launched in 2022. With reusable rockets, satellite launch costs have fallen to one-fortieth of previous levels.

  • NFT Trading Volume: NFT trade volume grew by 15% in 2022. Premium NFTs are expected to reach USD 100 billion in volume by 2027.

  • Crypto Market: In 2022, USD 1.5 trillion was wiped from the crypto market. The collapse of FTX, BlockFi, Luna, and UST dealt a heavy blow.

  • Digital Wallets: The number of global digital wallets reached 3 billion. With an annual growth rate of 8%, this figure is expected to rise to 5.6 billion by 2030.

  • Electric Vehicles: EV sales increased by 62%, while sales of internal combustion vehicles dropped by 7%. EV production capacity is expected to increase from 8 million to 60 million within the next 5 years.

  • Robotics Performance: With advances in imaging and deep learning, robot performance has improved 33-fold over the past 7 years.

  • SpaceX Rockets: In 2017, preparing a SpaceX rocket for reuse took 356 days. By 2022, this time dropped to just 21 days.

Future Expectations

The use of AI is expected to grow rapidly across industries. Not only the companies developing this technology, but also those implementing it, will have significant growth potential. Call centers will be replaced by companies leveraging AI-based solutions. Marketing agencies will evolve into smaller, highly skilled teams. In healthcare, technology will meet the need for qualified staff. AI will simplify decision-making and enable the most accurate diagnoses across all locations.

Vertical farming will become more widespread, and lab-grown meat will increasingly find its way to dinner tables. Education will also undergo rapid transformation, with personalized learning becoming more common. The education sector, which has remained largely unchanged since the industrial revolution, will not be able to resist the advancements of AI.

However, in 2023, we will see far fewer “unicorns” (companies valued over USD 1 billion). Instead, healthy and profitable companies with the resilience to endure tough times will come to the forefront. Those that survive during challenging periods will reap significant rewards when the market rebounds. For Turkey, while finding qualified personnel for technology companies will be challenging, cost advantages will provide an edge. With the growing number and quality of startups, we will see many Turkish ventures succeed in international markets.

At Boğaziçi Ventures, we will continue to manage our funds with innovative and sustainable strategies tailored to investor expectations. For more information about our funds and investment strategies, please feel free to reach out to us.