Business

Investing in Innovation

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How to Evaluate Tech Space Opportunities

InvestingInnovation_GMAG_WebIt”s decision time – reinvest, deploy to expand into new business operations or look for opportunities elsewhere. If considering outside opportunities, the tech space holds undeniable appeal.

Michael P. Hall, Merrill Lynch financial advisor, shares what potential investors should look for when vetting tech companies, and outlines innovative tech sectors and growth trends.

Indicators
Study up and coming tech businesses for:

  • New business model exploration based on customer needs, market demand or new technologies
  • Collaboration with other businesses to advance innovation
  • Pro-growth strategies
  • Focus on developing talent
  • Devotion to cultivating a global workforce

Innovation
Tech sectors showing promise include:

  • Cloud computing: consumer applications and data centers
  • Smart phones and tablets: new apps will lead to new markets
  • Health data management: improving efficiencies, modifying health delivery systems and utilizing mobile devices to customize health care approaches

Trends
Key tech sector growth areas are:

  • Enterprise software
  • Multi-platform diversification
  • Pure tech: Internet, software, hardware and other IT products

As with all investment strategies, Hall recommends that any business or individual investor work with a financial advisor to determine where to put money that best matches strategic goals.