10 trends for startups to watch in 2022 and beyond (Trend 4)

Metaverse is on everyone’s mind these days, with some being already fed up with it. But what is the Metaverse and should we care at this stage? Marvel’s fans, sorry to disappoint you, but the Metaverse is not infinite realities containing the Avengers (although there are some similarities!). The Metaverse is a virtual world where technologies like video, virtual and augmented reality make it possible for people (in the form of avatars) to interact and do anything (or almost anything) they can do in the real world. Things such as meetings, shopping for products and much more. The Metaverse is “here” as the next iteration of the Internet and social media, with the big tech companies affirming that it will replace these platforms. But is this true and when will this happen?

It’s difficult to ignore that big tech companies are throwing everything at it, and Facebook even rebranded as Meta to take a stand on how relevant the Metaverse will be to people’s lives. Facebook is not alone in this venture, with the likes of Microsoft (with Minecraft) Epic Games (the gaming company behind Fortnite) investing in building the Metaverse too. A utopian and sci-fi version of the Metaverse will probably take 5 to 10 years to materialise, but in the meantime we will certainly have more immersive and “embodied” experiences with computers and videos.

Companies like Nike already built their Metaverse on Roblox allowing people to play sports games as avatars. And they’re preparing to sell virtual goods on the Metaverse (this opens up complex interactions with blockchain, cryptocurrencies and NFT i.e. Non Fungible Tokens, essentially the tech that allows you to “own” virtual goods).

Experts are anticipating many challenges related to the Metaverse. Starting from accessibility: imagine how slowly your avatar would interact with your virtual friends if you have a bad connection, but also imagine a more divided world with people in low-income countries potentially left out of the Metaverse. Some also think that the Metaverse is a fancy construction of the big tech companies to avoid regulation. We are just now getting closer to having some form of regulation of the Internet and social media and it will take a while for governments and institutions to come up with ways to regulate the Metaverse.

What does this mean for startups?

• Metaverse excites investors: you don’t have to develop a Metaverse today as Nike did, but, depending on your sector, be ready to tell investors that you can be Metaverse ready quickly and at least you’re thinking of it, especially if you are a consumer-facing brand

• We have already seen pitch days and events happening in the Metaverse, so familiarise yourself with the concept and be potentially ready to pitch investors as an avatar!