VentureBeat.com recently ran an interesting piece (“How startup founders looking for funding should approach the metaverse” by Jay T. Ripton) that focused on startups and the metaverse. While the entire piece warrants reading, there are some key takeaways.
A recent Citibank analysis estimated that the emerging metaverse market could be worth between $8 trillion and $13 trillion by 2030, and there will be “nearly five billion people working, playing, socializing, shopping (and more) within the quickly evolving frontier.”
Even if this estimate proves to be too optimistic, it still points to a massive opportunity for entrepreneurs. Still, entrepreneurs need to stay up-to-date on the issues that are impacting the emergence of the metaverse. The author of the VentureBeat piece interviewed Dmitry Volkov, founder and general partner of Social Discovery Group, who offered some insights for metaverse entrepreneurs seeking funding from venture capitalists. Volkov made a few interesting points.
Interoperability is Being Addressed
Regarding a “lack of cohesion” in the metaverse, Volkov notes that “headway is being made. Organizations like Microsoft, Epic Games, Adobe, Nvidia, the Khronos Group and others have joined the new Metaverse Standards Forum to address the lack of interoperability that currently plagues the space.”
Look for Opportunities within the Ecosystem
Second, he emphasized that entrepreneurs should be looking at new arenas, such as serving or licensing to others: “Before challenging the industry heavyweights, a founder’s primary focus needs to be on identifying an untapped market opportunity and quickly developing a minimum viable product that the market will respond positively to.” Many entrepreneurs would be wise to service existing metaverses, if you will, rather than creating their own.
Stay Aware of Government Activity and Regulation
As always, entrepreneurs should keep any eye on government regulation. As noted in the article, “the Federal Trade Commission is working to block Facebook’s recent VR acquisition. But, the U.S. government has its sights on more than just Facebook. Congress is currently pushing to pass its first major effort to regulate big tech since the inception of the internet. Whether you like Big Tech or not, this is something to keep an eye on, as it could make it harder to make an exit down the road.”
Given various challenges, from government to more philosophical questions, the final point in this piece was one of entrepreneurial opportunity, that is, if entrepreneurs and creators get it right, the metaverse will be rewarding for consumers and therefore profitable for entrepreneurs and their employees.
Metaverse Momentum and Entrepreneurs, by Karen Kerrigan