Have you ever wondered how Amazon turned the once capital-intensive logistics industry into something that can now be done by a single person with a car and an app? Or how TikTok has allowed anyone with a smartphone to become a content creator overnight? The answer is decomposition – the transformation of industries through technology.
But what exactly does "decomposition" mean, and how does it play a role in this revolutionary shift? Decomposition refers to the breaking down of a traditional, capital-intensive industry into smaller, more accessible pieces. It's the process of taking a complex system and simplifying it, making it more accessible and efficient.
Let's take a look at the logistics industry as an example. In the past, it was necessary to have a fleet of trucks and a well-established administrative system in place to operate in the logistics industry. But with the advent of technology, anyone with an app and a car can now become a delivery driver on demand, whether it's through Amazon, DoorDash, Uber, or any other delivery service.
The same goes for the entertainment industry. It used to take a production studio, distribution rights, and a lot of resources to create content for mass consumption. But now, all it takes is a smartphone and a few minutes to become a viral sensation on platforms like YouTube, Instagram, and TikTok.
And it's not just limited to the world of logistics and entertainment. The impact of decomposition can be seen across a wide range of industries. Take the legal profession for example. With the advent of AI and machine learning, much of the work previously done by lawyers can now be automated. This has made legal services more accessible to a wider range of people, and has disrupted the traditional model of the legal profession.
Similarly, finance, healthcare, and education are undergoing decomposition and transformation. Robo-advisors are making investing more accessible and affordable, while telemedicine and digital health platforms are changing the way we receive medical care. Online learning platforms like Coursera and Udemy are making education more accessible and flexible, enabling individuals to learn new skills from anywhere. AI is automating many manual tasks in these industries and providing valuable insights and recommendations.
Artificial intelligence will play an increasingly important role in the decomposition revolution. AI algorithms can analyze vast amounts of data in a fraction of the time it would take a human, and use that information to create more efficient systems. For example, AI can be used to optimize delivery routes, automate content creation, and streamline the entire delivery process.
Now, let's turn our attention to the economic landscape. We're likely heading into a recession, and while that may sound concerning, it actually presents a unique opportunity for angel investors. In fact, during recessionary economic periods, angel investing has historically been a lucrative investment option. With more start-ups and entrepreneurs seeking funding during economic downturns, the twin pools of talent and of potential investments increase, offering angel investors a wider range of opportunities to choose from, with greater likelihoods of success on a per project basis.
So, what can you do to take advantage of these converging trends? The first step is to educate yourself on the basics of angel investing. Download our free white paper, "Introduction to Angel Investing" to get a deeper understanding of the world of angel investing and how it can help you achieve your financial goals. It provides a comprehensive overview of the angel investing process, including what to look for in a startup and the risks and rewards of investing.
In addition, Evolution is offering a free class on February 15th that will delve deeper into the mechanics of angel investing. You'll learn about the different stages of investing, the role of angel investors, and how to make informed investment decisions. Whether you're a seasoned investor or just starting out, this class will provide valuable insights into the exciting world of angel investing.
And finally, join our Facebook Group for Angel Investors, where you can connect with other like-minded individuals and learn more about the exciting opportunities that technology is creating.