On June 25th, Ernst & Young (EY) announced that they were investing $64 billion to support 3,000 startups over the next 10 years. The announcement was made by EY’s Global Chairman and CEO, Doug Oberhelman, during his keynote address at EY’s 2016 Global Entrepreneur Awards in New York City.
Ernst and Young (EY), the global professional services firm, invested a total of $64 billion to support 3,000 startups over the next three years. This includes the funding of EY Labs, a venture capital fund that invests in early stage technology companies.
Today, Ernst and Young announced that it will invest $64 billion over the next five years to support the startups that drive innovation in industries from artificial intelligence to robotics. In this article, we’ll explain what this means and what it could mean for the future of startups.
How Ernst and Young Investment will help the future of the world?
The future of work:
“As we prepare for the future of work, we’re committed to helping startups deliver solutions to our clients,” Carlson said. “Our investment will enable us to offer entrepreneurs and innovators a unique opportunity to develop disruptive technologies that have the potential to change the way we live and work.”
“We’re committed to supporting entrepreneurs and innovators who have the vision, creativity and determination to disrupt industries and deliver innovative solutions to our clients,” said Chris Morran, global chairman and CEO of Ernst & Young.
This fund follows EY’s $64 billion investment last year in the accelerator, the Innovation Fund, which supports early-stage startups. The Innovation Fund supported more than 300 companies through programs including EY Labs and the Entrepreneurship Program, among others.
In addition to the Innovation Fund, EY Labs is an independent research and venture development organization focused on technology and innovation. The Innovation Fund and EY Labs support the best ideas, companies, and founders, and they’re bringing them together in EY Labs’ Venture Acceleration Centers across the world.
In 2015, Ernst & Young invested a total of $4.3 billion dollars to support 826 startups. And in 2016, Ernst & Young invested a total of $5.9 billion dollars to support 618 startups.
Oberhelman said that “We need to change the way we think about entrepreneurship.”
He added, “When we think about the future, we tend to think about what we don’t know, not what we do know. We tend to think about disruption, not about innovation. We tend to think about the lack of diversity in our economy, not about its abundance. We tend to think about the lack of diversity in our society, not about its abundance. We need to change the way we think about entrepreneurship.”
Oberhelman emphasized that “technology, not politics” is the key to fixing problems.
He explained, “Technology is the answer, but not because politicians can fix problems through legislation. Technology is the answer because it gives us the power to change things. If we want to have a better economy, we need to change the way we think about entrepreneurship.”
Oberhelman added that “the world has changed,” and technology is now part of how we view the world.
He stated, “Technology has become more important to business and to society than ever before. Every day we see new technologies and innovative products and services and a whole new world of opportunity.
“The world has changed,” he continued. “The future will be different, and the future is going to be powered by innovation. Now, I’m not saying that politicians shouldn’t change/
Areas they will be investing in?
The $64 billion investment from Ernst & Young will fund investments in the following areas:
- Internet of Things
In a recent survey, the research group Accenture found that 53% of the companies in the United States believe that technology is the most important driver of business innovation.
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The fund will focus its investment on early-stage companies that will accelerate the development of products and services. The companies will be selected based on the strength of their leadership teams and management teams, and their ability to deliver on market potential, said Eric Carlson, chief innovation officer at EY.
Ernst and Young’s Growth Partnership contributions
- The investment is part of Ernst and Young’s Growth Partnership 2020. According to their website, Growth Partnership 2020 is “a 10-year commitment to helping entrepreneurs and startup founders across the globe accelerate growth.”
According to the announcement, the investment will go toward supporting startups around the world that focus on technology, healthcare, and sustainability.
- The fund will focus on three categories: Artificial Intelligence, Robotics, and Blockchain. It is likely that startups within these three categories will see the greatest returns on investment.
- EY Labs will be the largest investor in this fund. EY Labs is a fund that invests in early-stage technology companies.
- EY is not the only company that has invested in startups. Other companies that have invested include Microsoft, Intel, and JPMorgan Chase.
- These investments are the first step in a multi-billion dollar commitment to startups that will come through the end of 2020.
- This is good news for young entrepreneurs. As more and more people invest in startups, these startups will have the resources to grow and scale their businesses.
- With the help of these companies, startups can create products, services, and experiences that improve lives.
- More startups will lead to more jobs. This is a big deal because the job market is in a slump right now.
- The job market has gotten so bad that even the wealthiest countries are struggling to fill jobs.
- A report released in April by the World Economic Forum showed that the job market is still not strong enough to keep pace with the growth of the population.