The era of American hegemony is ending. It is being replaced by a new geopolitical world order defined by great power competition and increased nationalism, a transition that will have enormous consequences for the global economy. This new environment will mean the end of, or at least a shift away from, the unique conditions that fueled global growth and development for the past 30 years, and will introduce increasingly complex, systemic challenges that will require new types of technology, innovation, and collaboration to solve.
Geopolitics Are Changing. Venture Capital Must, Too.
As we shift away from the unique conditions that fueled global growth for the past 30 years, investors will need more capital — and more patience.
February 10, 2023
Summary.
For decades, the tech industry thrived based on a set of unique macroeconomic and geopolitical conditions. U.S. hegemony, globalization, and cheap money combined to allow tech startups to spread their products around the world. That era is ending and tech will have to change to keep up. In the new era, politics takes precedence over economics. But there will be new opportunities for tech in areas like health care, energy, and defense. The companies that rise to meet those challenges will require more capital, more patience, and more governance from investors.
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New!
HBR Learning
Global Collaboration Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Global Collaboration. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to overcome barriers when working globally.