Although the current market conditions, investors have a record amount of capital – an estimated $230 billion in dry powder – in reserve. They just need to find the right place to deploy it.
Despite the gloom, doom and scramble for profits, an area often overlooked by investors where assistive technology will generate profits regardless of the state of the economy: government spending for technology.
Furthermore, much of government spending is concentrated in areas important to society, such as climate science, disaster response, health care, national security, and education.
The United States is currently in its most significant financial sprint since World War II. It’s a Marshall Plan-sized spending program on domestic technological innovation that most investors don’t pay attention to. In fact, the total amount of government spending, when adjusted for inflation, exceeds the total amount spent by the United States on World War II by 130%.
Countries are seeking, and in some cases necessary, to broaden their perspectives and find solutions to problems that were not solved by previous generations.
For decades, however, investors focused on the sector either ignored or confused by the public sector, unable to match their innovation to its demands. A lack of product-market fit combined with a lack of understanding of the inner workings of government stifles real innovation and shuts down billions of dollars of opportunities.
The key to unlocking these resources is understanding what investment priorities are and how to approach them.
The biggest mistake investors make is focusing so much on the federal government that they don’t see that much of federal spending flows through the states. For example, the response to the COVID-19 pandemic and the Jobs and Infrastructure Investment Act add up to trillions of dollars.
