The Future of Work: Challenges and Solutions
Exploring How Technological Advancements and Societal Shifts are Shaping the Modern Workforce and Creating New Opportunities
The future of work is rapidly evolving, driven by new technologies, evolving economic conditions, and shifting societal expectations. This transition towards more adaptable, technology-focused, and employee-centered environments presents both opportunities and challenges for workers and organizations alike. Traditional jobs are undergoing significant transformations, fundamentally altering how, where, and why we work.
This blog delves into key shifts in the modern workplace, such as the rise of gig work, the imperative for upskilling and education technology, the proliferation of virtual meetings and remote work, the impact of AI and automation, and the critical role of robust identity and access management.
At Alumni Ventures, we believe that the convergence of new technologies and evolving societal norms presents compelling investment opportunities within the “future of work” sector. We’ll introduce you to some our portfolio companies responding to and shaping this vital part of the economy and society.
ABOUT THE AUTHORS
Jason Bird
Associate, Seed FundJason contributes his expertise in financial analysis, sales development, and market research to the Seed team. Previously, Jason served as an Analyst at Yard Ventures, specializing in sourcing and conducting due diligence for investment opportunities across various stages. His professional background is primarily in sales, with significant experience in real estate and tech sales. Jason is also an entrepreneur, having co-founded Hinzu, a one-stop promotional outlet offering development, design, marketing, and startup advice services to artists. Jason is an alumnus of Babson College, where he earned a Bachelor of Science degree with a focus on entrepreneurship and finance.
Simon Kushkov
Venture Capital Summer AssociateSimon Kushkov is a Junior at the Wharton School of Business pursuing a Bachelor of Science in Economics with a concentration in Corporate Finance and Management. With a strong interest in finance and entrepreneurship, Simon pursued a diverse set of experiences, including a role at Drip Capital as a private equity analyst, working on multiple start-ups, and pursuing his interest in venture capital at Alumni Ventures. Simon is an internationally recognized saber fencer, and will spend his next summer at JPMorgan Chase as a Corporate and Commercial Banking Analyst.
Isaiah Bird
Fellow, AV Seed FundIsaiah is a senior at Boston University, studying Economics and Business Administration, and a participant in this year’s AV Venture Fellows Program. He is passionate about finance and entrepreneurship. At BU, Isaiah serves on the Advisory Council on Socially Responsible Investing, where he assists the Board of Directors in managing the university's $3 billion endowment.
Macro Trends
- Home
Automation and AI's Impact on Workforce Dynamics
McKinsey reports that by 2030, up to 14% of the global workforce — equivalent to 375 million workers — may need to switch occupations due to automation and AI. - Home
The Rise and Economic Impact of the Gig Economy
Concurrently, the gig economy is flourishing, with 57 million freelancers in the U.S. contributing $1.4 trillion annually to the economy. - Home
The Enduring Shift Toward Remote Work
Remote work has become commonplace, adopted by over 70% of organizations worldwide, underscoring a lasting trend. - Home
The Critical Need for Upskilling in Today's Workforce
Nearly 90% of executives acknowledge current or projected skills gaps, underscoring the urgent demand for ongoing upskilling initiatives.
Gig Economy
The gig economy, a rapidly expanding segment of the workforce, signifies a major shift from traditional employment models to short-term, flexible jobs, or “gigs,” often enabled by technology. This evolving landscape allows individuals to break free from the confines of a traditional nine-to-five job, offering greater autonomy and flexibility in their work.
Freelancers and independent contractors, particularly those in high-demand roles like rideshare driving, are at the forefront of this change. The ever-increasing need for transportation, especially in urban areas, enables gig workers to earn significant income while enjoying the freedom to choose their work hours. A prime example of innovation in this space is Gridwise, an Alumni Ventures portfolio company, which provides analytics, tracking, and real-time insights for rideshare and delivery drivers. Gridwise enhances earnings and efficiency, empowering gig workers to maximize their potential in this booming market.
The gig economy, projected to surpass $500 billion in gross revenue within five years, continues to attract a growing share of the global workforce. As technology advances, the gig economy is set to reshape the future of work, driving new opportunities for independence and entrepreneurial spirit, with companies like Gridwise leading the way.
Upskilling & EdTech
When discussing the future of work, it’s crucial to recognize the transformative impact of technology, especially the rapid rise of artificial intelligence. As technology evolves swiftly, the demand for new learning grows just as quickly, with education required to support lifelong skill upgrades and knowledge updates. Traditional educational pathways often can’t keep up, creating a need for more agile learning solutions.
This is where Education Technology, or EdTech, comes in. EdTech platforms make learning accessible through online courses, interactive tutorials, and virtual classrooms, allowing individuals to upskill at their own pace and from any location. This solution bridges the gap between formal and informal education with targeted training and certifications, making credentials more accessible without a traditional degree. It also transcends geographical boundaries, providing high-quality education to learners worldwide.
An innovator in this space is VeroSkills, an Alumni Ventures portfolio company. VeroSkills offers coding tutorials and courses, effectively bridging the gap between education and employment by helping recruiters find and hire suitable candidates. Providing targeted, high-quality education, VeroSkills empowers individuals to stay competitive in a rapidly changing job market. As the EdTech industry grows, driven by the need for continuous upskilling, companies like VeroSkills are reshaping the future of work, ensuring a well-prepared, adaptable workforce.
Learn More About the Seed Fund
Invest in entrepreneurial companies at the earliest stage where the opportunities for value creation are typically highest and company valuations are usually at their lowest.
Max Accredited Investor Limit: 249
Virtual Meetings and Remote Work
Since the onset of the COVID-19 pandemic, the landscape of remote work environments has undergone profound changes. As of 2023, remote work has become a mainstream practice for many companies, with over 70% of organizations worldwide offering their employees some form of remote work flexibility (Source: Global Workplace Analytics). Remote work environments are expected to remain integral, shaping the future of work with a hybrid approach that blends remote and on-site work environments.
In 2021 AV invested in a revolutionary company called SoWork, which specializes in creating virtual co-working spaces that replicate the functionalities of physical offices. These virtual environments are tailored to enhance productivity, offering customizable settings, integrated communication tools, and collaborative features. By providing a seamless transition from traditional office settings to remote work scenarios, SoWork supports the evolving needs of businesses and professionals in today’s digital landscape.
AI and Automation
In recent years, AI and automation have rapidly advanced from experimental technologies to indispensable tools in industries worldwide, streamlining operations, improving productivity, and paving the way for autonomous systems that redefine efficiency and innovation across sectors. That utility is expected to expand, with the global AI market projected to reach $733.7 billion by 2027.
Two sectors where AI is making an impact are healthcare and real estate workforce management and financial operations. In 2023, AV made a strategic investment in Dropstat. This innovative AI-driven platform revolutionizes healthcare staffing by predicting and filling shift gaps efficiently, thereby reducing costs and ensuring seamless staffing solutions.
AV similarly invested in LeaseUp, a cutting-edge technology that digitizes and streamlines commercial real estate transactions. LeaseUp enhances broker efficiency and client satisfaction through automated processes and real-time data insights, simplifying complex transactions and setting new benchmarks in the real estate industry.
Identity and Access Management
Identity and Access Management (IAM) solutions have evolved significantly with technological advancements and the rising importance of cybersecurity. The global IAM market is projected to grow from $8.3 billion in 2020 to $24.1 billion by 2027, driven by increasing cybersecurity threats and regulatory compliance demands (Source: MarketsandMarkets). Initially focused on basic authentication, IAM systems now include advanced features like multi-factor authentication and identity governance to secure digital identities and streamline access across diverse IT environments.
In recent years, AV has strategically invested in leading IAM companies such as AKA Identity and Spintly, each contributing distinct capabilities to the cybersecurity landscape. AKA Identity specializes in comprehensive identity governance and administration (IGA) solutions, which automate and centralize processes across enterprise IT systems. Meanwhile, Spintly specializes in innovative access control systems that integrate IoT technology, enabling flexible and secure access management through smart credentials and wireless locks.
Participating In and Driving the Evolution
The future of work is being reshaped by unprecedented technological advancements and societal shifts, presenting myriad opportunities for innovation and growth. The six companies from our portfolio spotlighted here indicate how entrepreneurs are responding to the evolution of work and the variety of creative solutions possible in response. It’s an evolution that we will continue to participate in, respond to, and shape as workers, investors, and innovators.
Learn More About the Seed Fund
Invest in entrepreneurial companies at the earliest stage where the opportunities for value creation are typically highest and company valuations are usually at their lowest.
Max Accredited Investor Limit: 249
This communication is from Alumni Ventures, a for-profit venture capital company that is not affiliated with or endorsed by any school. It is not personalized advice, and AV only provides advice to its client funds. This communication is neither an offer to sell, nor a solicitation of an offer to purchase, any security. Such offers are made only pursuant to the formal offering documents for the fund(s) concerned, and describe significant risks and other material information that should be carefully considered before investing. For additional information, please see here. Venture capital investing involves substantial risk, including risk of loss of all capital invested. This communication includes forward-looking statements, generally consisting of any statement pertaining to any issue other than historical fact, including without limitation predictions, financial projections, the anticipated results of the execution of any plan or strategy, the expectation or belief of the speaker, or other events or circumstances to exist in the future. Forward-looking statements are not representations of actual fact, depend on certain assumptions that may not be realized, and are not guaranteed to occur. Any forward-looking statements included in this communication speak only as of the date of the communication. AV and its affiliates disclaim any obligation to update, amend, or alter such forward-looking statements, whether due to subsequent events, new information, or otherwise.