1. ARM Processors
Originally developed at an educational computer company in Cambridge, Sophie Wilson designed the first instruction set for an Acorn RISC Machine. She later received a lifetime award for her work. The architecture went on to be a part of most smart phones and small devices. More recently it has taken over the laptop and tablet industry due to its efficient processing power. Many have speculated that it is set to take over the desktop industry too. One way to get investment exposure is indirectly through Softbank. Their CEO Masayoshi Son, went out of his way to swiftly purchase a company with the rights to the hardware. More recently, ARM processors have proven to be more reliable for encryption and security than AMD’s and Intel’s CISC architecture. Alternately you can invest in Qualcomm which also designs ARM chips.
2. Smart Contracts
Companies such as Docusign have already helped you sign off on your mortgage and rental agreements, but they won’t stop there. Not only are notaries becoming a thing of the past. Companies are looking for more and more ways to cut out the lawyers and back office paper-shufflers. At last, the growth of the API economy completed the final piece of the puzzle to make smart contracts useful. Developers can now take in useful data from trusted parties for automated execution of contracts. For example, a company running a service in the cloud could have an insurance smart contract that pings a server to make sure there is 99% up time. In the event that the server goes down, the payment is automatically disbursed. A plethora of derivative financial instruments using the Yahoo Finance API and even sports betting with the Stats API will be created. Of course, there is always the risk of some bug or exploit in the contracts, which is why robust frameworks are being thought of and built.
Besides investing in Docusign, SmartContract.com has been a leading developer of this infrastructure. They intend to use their open source software and a “Chainlink” staking token to provide a secure smart contract protocol for all to build on top of.
3. Low-Code Software
Coding and software development are some of the most expensive types of work today. A handful of burgeoning enterprises have sprouted to dis-intermediate the industry. Low code software enables users to build applications in a modular fashion using an intuitive GUI instead of code. The aim is to enable non-technical people to be able to create simple apps on their own. It also helps experienced developers focus on more novel and high-level projects.
The easiest way to invest in this trend is through Appian the only publicly traded low code software company exclusively focused on the niche. Though I wouldn’t be surprised if competitor Outsystems has an IPO soon and am watching out for it. Salesforce does have its own low code platform, for a non-pure play.
4. Augmented Reality
While there has been plenty of buzz about Virtual Reality, it has yet to really become a household technology. Perhaps Augmented Reality—the mixing of virtual worlds with the real world is a better bet. Imagine getting instructions on replacing a car part while you do it. Straight through your peripheral. Or, go for a run and compete with a virtual avatar of your friends best lap time.
Lumentum Holdings Inc is a developer of 3D sensing lasers. Lumentum provides the tech for facial recognition on for the iPhone X. This is a good start for AR investors. Also, Vuzix is a supplier of wearable display technology and augmented reality. Intel recently picked up a 30% stake in the company, a good sign.
5. Video Game Streaming
Shadow is one of many small companies working in the rapidly growing game streaming market. Although Shadow in particular has done it particularly well. It has latency down to levels so low it could now feasibly be used in competitive pvp games, where every millisecond counts.
Unfortunately Shadow is a subsidiary of a private company. Although it has formed a strategic partnership with Equinix for infrastructure, so indirect exposure to the company can be made. Amazon and Nvidia have also made strides to enter the video game streaming market. Another company called Playkey did an ICO for their own service in 2017, and surprisingly seems to be executing on their plans. They have maintained a fairly large number of subscribers to date.
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