Despite the current market Under the conditions, investors have a record amount of capital – roughly $230 billion in dry powder – in reserve. They just need to find the right place to deploy it.
Despite the gloom, the doom, and the struggle for returns, investors all too often overlook one sector where technology support will pay off regardless of the state of the economy: government spending on technology.
Moreover, a significant portion of public spending goes to areas that are important to society, such as climate science, disaster response, health care, national security, and education.
The United States is currently experiencing the most significant financial sprint since World War II. It’s a Marshall Plan-sized spending program for domestic technological innovation, and most investors don’t pay attention to it. In fact, inflation-adjusted total government spending exceeds the entire amount America spent on World War II by 130%.
States are striving, and in some cases forced, to broaden their perspective and find solutions to problems that the previous generation failed to solve.
However, for decades, industry investors have either been ignored or puzzled by the public sector’s inability to match its innovations to its needs. Lack of product-to-market fit, coupled with a lack of understanding of the inner workings of government, has hindered true innovation and blocked off billions of dollars of opportunity.
The key to unlocking these resources is understanding what investment priorities are and how to access them.
The biggest mistake investors make is that they focus so much on the federal government that they don’t see that the bulk of federal spending goes through the states. For example, the response to the COVID-19 pandemic and the Infrastructure and Jobs Investment Act together amount to trillions of dollars.
Credit: techcrunch.com /