3 clicks, 3 months or 3 quarters, we have now entered a new period of no return!

Today, the United States battles a confluence of unprecedented challenges, including Covid 19, as well as natural and manmade disasters, in the form of wildfires, record-setting temperatures, and “superstorms”. At the same time, the U.S. suffers from a culture of degenerating social discourse, intensifying political polarization, and increasing policy confusion. In the past, ingenuity has bailed the U.S. out of crises, but will that be true for the next decade?

Many of the brightest minds globally have been educated in the U.S. and chosen to remain in the U.S., but the option to do so has been revoked in many cases. A more nationalistic America has driven the diffusion of technology and business model innovation. During the last 10 years, a dispersed, global talent pool has arisen, helping to create China’s leadership in digital payments and digital banks, as well as the proliferation of new tech centers in London, Berlin, Singapore, Tokyo and elsewhere.

Technology and entrepreneurship has entered a more global phase. In venture capital, we have witnessed a shift from a U.S.-centric model to nearly 50% of all venture capital dollars being deployed in China. The access to startup capital has become global; leading to an ever-rising number of successful companies being built outside of the U.S. As we look forward, we are excited about accelerated development outside of Silicon Valley, by entrepreneurs in their home countries building global tech companies competing on a global basis.

We are often asked about what is interesting post-COVID. We see a plethora of opportunity, in part because this treacherous disease has not stifled innovation, but helped accelerate its adoption. With the race for a vaccine, the use of data has never been more prevalent. eCommerce has become an essential service, not a nice to have. Digital payments are being adopted by all ages, not just millennials. Supply chain digitization and transparency is crucial to ensure global trade and domestic security of critical items. Cybersecurity solutions have become even more imperative in an online world where infiltration, phishing, malicious apps, account takeover and misinformation see ever-growing opportunities.

We are in a new norm. COVID-19 has accelerated digitization of Financial Services globally across payments, ecommerce, supply chains (locally, regionally and globally), capital markets, insurance, fraud, and cybersecurity. Whether it takes 3 clicks, 3 months or 3 quarters, we have now entered a new period of no return fraud and cybersecurity.

Melissa C. Guzy

Cofounder & Managing Partner, Arbor Ventures