Despite tough economic conditions and high-profile bad press surrounding the metaverse — an immersive, shared virtual environment that people access via the Internet — investors are feeling optimistic about what some are calling the future of the web.
Venture capital and institutional investor investments in the metaverse currently account for almost half of investor assets, and are expected to grow over the next five years, according to a KPMG survey.
The report was based on information from 302 institutional investors, including banks and commercial funds, as well as 103 venture capital companies/funds, and revealed that three quarters of investors plan to maintain or increase their investments in the metaverse over the next five years.
Related: Special Report: Metaverse in the Enterprise
Customer interest in burgeoning technology appears to be a key driver of investment in the metaverse, cited by 64% of respondents, followed by a desire to pursue emerging technologies and the potential to reach new audiences and customers.
Venture capital funds seem particularly keen on investing in the Metaverse, with nearly three-quarters of respondents citing emerging tech investing as a reason to increase or maintain their bet on the Metaverse over the next five years.
Regulation and privacy issues concern metaverse investors
While there is a general sense of optimism about the Metaverse, seven out of 10 investors surveyed said they were concerned about a variety of factors, from regulation and privacy to worries about adoption levels. .
Anu Puvvada, Head of KPMG Studio and Acting Head of Metaverse COE, explained that while it remains to be seen which Metaverse platforms and capabilities will have the most sticking power, around 90% of institutional investors and venture capitalists predict that the metaverse is the next phase of the Internet.
“It’s clear that investors are looking beyond current macro factors and consumer adoption rates and envisioning a future where the metaverse is used for business meetings, trainings and learning experiences,” he said. she declared.
Puvvada noted that this confidence, however, depends on factors such as the prospects for improved interoperability between metaverse platforms, wider adoption in the workplace, and more affordable hardware options.
Since it’s uncertain which products and platforms will grow in popularity, early investments keep metaverse investors in the game, regardless of how individual technologies evolve, she added.
About a third (36%) of investors surveyed said they had missed great opportunities by not investing or investing too little in metaverse technologies so far.
Diversity, equity and inclusion are a priority for metaverse investors
Diversity, Equity, and Inclusion (DEI) in the Metaverse is a top concern for investors‘ spirits, according to the survey.
With the metaverse in its infancy, there is an opportunity to build a more inclusive culture from the start. Affordability, avatar customization, and governance are all priorities.
Thirty-eight percent of investors cited providing better access to affordable metaverse technologies as key to creating an inclusive metaverse experience.
The second and third most important factors in ensuring DEI in the metaverse are the ability to customize avatars to represent people from all walks of life (34%) and establishing acceptable forms of governance through a combination of coded rules and social norms (33%).
Related: Women are the primary users of the metaverse, but men dominate the jobs that shape it
“To create an equitable future with these technologies, we need to activate new tactics to increase wide-scale adoption and reduce costs,” Puvvada said. “Early education, specialized training, and skill development will play a central role in promoting education and familiarity with the Metaverse among users.”
She pointed out that some “coded rules and social norms” that can support DEI in the metaverse would include ensuring user authenticity and enforcing policies of no tolerance for discrimination and offensive language.
Nearly seven in 10 organizations say they plan to do business in the Metaverse in the next three years, according to a December Tenable survey of 1,500 professionals representing roles in cybersecurity, DevOps and IT engineering. .
About the Author
Nathan Eddy is a freelance writer for ITPro Today. He has written for Popular Mechanics, Sales & Marketing Management Magazine, FierceMarkets, and CRN, among others. In 2012, he directed his first documentary film, The Absent Column. He currently lives in Berlin.