Weenmony introduces you to the revolution initiated by Big data, the sectors most affected by this significant turning point, and the new investment opportunities offered by this new technology.
THE ADVENT OF BIG DATA
Big Date has been a popular topic for several years now. This theme is at the center of all attention. Between the fear of Big Brother and the benefits that the consumer can draw from it, it crystallizes passions and is at the center of many companies’ stakes, whatever the sector, as was the Internet at the turn of the 2000s. Like the web, it is an unmissable role for a large number of companies, a real opportunity whose main issue is how to exploit it.
What is Big Data?
But what exactly is Big Data? The term means “big data” and refers to the quantitative explosion of digital data. This very voluminous set of data, which is growing every day in pharaonic proportions (according to bigdata.fr, we produce about 2.5 trillion bytes of data every day), cannot be handled with any conventional database or information management tool. This data comes from all the information we send out via the web mainly. Indeed, the phenomenon is primarily due to the technologies that allow us to connect all types of objects.
With the multiplicity of these data, the question of storing and analyzing all this information arose.
The pioneering companies of Big Data
Unsurprisingly, technology companies were the first to take advantage of the opportunities offered by Big Data. Companies such as IBM, Cisco, and Microsoft started building data centers (Significant decrease in data storage cost, which allowed big data to emerge) and created systems to analyze and exploit it.
The technology companies have been following the exploitation of Big Data by the health sector actors. They are strictly interested in this technology to make the medicine of tomorrow called 4P medicine: Predictive, Preventive, Personalized, and Participative. Indeed, Big Data allows an in-depth study of the identification of disease risk factors, but also helps in the diagnosis, choice, and monitoring of the effectiveness of treatments, and allows the development of pharmacovigilance and epidemiology.
The manufacturing industry that produces the connected objects has followed suit, no longer content to create the objects that provide data and, in turn, exploit it. The automotive industry has moved in this direction, building vehicles with multiple sensors and analyzing the data to make driving safer, more responsible, and environmentally friendly.
Finally, the banking and insurance sector has also rapidly taken up the phenomenon. The digitization of the insurance world (these startups that combine insurance and technology) is already well advanced and is continuing in great strides with the development of InsurTech. The data is used to improve customer relations and anticipate new risks because insurance companies are better informed, more and more, and directly about the behavior of their policyholders as well as external events that could directly impact them.
Finance also relies on the use of Big Data to improve its analytical tools, as investment funds can now use this information to shuffle important financial data to improve their performance continually. If we can wonder about the future of trading in the era of Big Data, There is no doubt that this revolution will have a substantial impact on the different components of the years to come. In any case, it is essential not to miss out on this innovation, which will very quickly and profoundly transform the financial markets soon.
HOW TO INVEST IN BIG DATA?
Big data is now an investment theme in its own right.
Big Data funds
There are funds dedicated to Big Data. Since 2015, Edmond Rothschild Private Bank has been offering the Edmond de Rothschild Fund Global Data, which identifies the players (suppliers or users) who will be able to seize the opportunities provided by exploiting the flow of information. The fund selects stocks of technology companies, such as certain GAFA (Google, Apple, Facebook, Amazon), but also sensor manufacturers or software publishers, as well as companies that use Big Data.
More recently, in January 2017, Serena Capital launched a fund dedicated to Big Data and Artificial Intelligence, which focuses primarily on startups. This €80 million fund, launched with entrepreneur Bertrand Diard, aims to identify high-potential companies and work with them to build a long-term vision.
After the United States, which already has three funds specializing in Big Data and artificial intelligence, the USA is embarking on Big Data investment. To create a national ecosystem on the subject, Serena Capital and Bertrand Dyard are launching a series of conferences in partnership with the American VC Firstmark.
Big data companies to invest in
In addition to funds, you can also invest directly in these Big Data startups, in particular via crowdfunding or equity financing platforms. There are a large number of companies specializing in this area. To create a benchmark index of the major players in the sector: the ISE Big Data Index and it is now possible to invest in the Big Data sector via the ISE Big Data ETF, which tracks this index.
Investment in Big Data is booming. It must be said that finance is very fond of the new technologies that are helping to build the world of tomorrow. All the disruptive technologies that are profoundly changing the face of funding are also excellent investment opportunities. We are thinking of the course of Blockchain technology and its multiple applications, especially in the banking sector, but also in Bitcoin. This cryptocurrency, which experienced an exceptional increase in 2016, jumped by + 120%, which during recent years in the United States. States have seen countries set up Bitcoin trust companies and launch dedicated funds. Finally, artificial intelligence and augmented reality are also promising investment themes. Indeed, by 2020, the virtual reality market should reach a value of 162 billion dollars. Enough to make you dream!
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