# The Perfect Storm of Growth and Success for the ResTech Market Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-05 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: ResTech: Driving Success in the Age of Digital Acceleration Meta Description: Discover the booming ResTech sector and how it can revolutionise the way businesses connect with customers in a post-COVID world. ResTech - the future of URL: https://financedigest.com/the-perfect-storm-of-growth-and-success-for-the-restech-markethtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/three-business-people-pointing-at-paper-with-marketing-analysis-sbi-300739589-1736837713055-compressed.jpg) _By_ **_Ben Hogg,_** _MD, International, Lucid_ The financial markets are riding high with strong capital availability, robust M&A opportunities and active IPO markets. Where there is still some market uncertainty with the backlash of the COVID-19 pandemic, the markets are also seeing a big shift from traditional IPOs to SPACs. Special Purchase Acquisition Company (SPAC) IPOs have seen record growth this year, as venture capital (VC) and private equity (PE) [firms show more interest in incorporating them into their investment portfolios given the relatively attractive yield and minimal](https://www.financedigest.com/over-a-dozen-chinese-based-firms-say-they-have-minimal-exposure-to-svb.html "Over a dozen Chinese-based firms say they have minimal exposure to SVB") risk these can provide. The European markets have also been hot, with [private equity and venture investors](https://www.financedigest.com/the-vc-opportunity-breaking-down-barriers-for-private-investors.html "The VC opportunity: breaking down barriers for private investors ") showing no signs of slowing down as we enter the final quarter of the year. According to the latest figures from [Real Deals’ Data Hub Market Tracker](https://realdeals.eu.com/market_tracker/q2-2021), European investments rose by 10% in the second quarter of this year. [Investors are clearly eager to see](https://www.financedigest.com/analysis-weary-investors-see-little-respite-to-fed-hike-gloom.html "Analysis-Weary investors see little respite to Fed hike gloom") capital deployed, but growth will still be critical to counter lofty investments. Beyond the GICS (Global [Industry Classification Standard) that outlines the core 11 sectors for investment purposes, there are many industry groups and sub-sectors within this that stand to benefit](https://www.financedigest.com/industries-with-the-most-workplace-accidents-and-workers-comp-benefits.html "Industries with the Most Workplace Accidents and Workers Comp Benefits") from these positive market dynamics, including Research Technology (ResTech). [ResTech is unique in that the sector touches and influences many aspects of both the technology and consumer ecosystem — from software and tech innovation to marketing](https://www.financedigest.com/tech-earnings-hit-pause-button-on-market-rally.html "Tech earnings hit pause button on market rally") automation and consumer marketplaces. In the wake of the last 18 months, most [businesses are scrambling to get a better understanding of their customers as the world continues to tackle the global pandemic and the global shift to diversity and inclusion and social good practices](https://www.financedigest.com/6-practical-tips-for-starting-an-online-business.html "6 Practical Tips for Starting an Online Business"). There has never been a greater need to ‘pick the brains’ of the consumer. Add to this the [growth of a tech-forward mentality across business](https://www.financedigest.com/which-kpis-should-a-budding-business-focus-on-for-sustained-growth.html "Which KPIs should a budding business focus on for sustained growth?") where timelines are accelerated and quick access to knowledge is paramount, and you have a perfect storm of growth and success for ResTech. **But First, What is ResTech?** Similar to the advent of other high growth sectors like AdTech, MarTech and EdTech, ResTech is attracting attention from the investment community as it becomes a true ecosystem [bringing together software and tools to help businesses](https://www.financedigest.com/how-to-bring-business-and-charities-together-through-events.html "How To Bring Business And Charities Together Through Events") better reach and engage with their customers and audiences. With the ability to quickly gauge the behaviours, opinions and sentiments of different groups of people, ResTech enables organisations, agencies and [brands to efficiently target](https://www.financedigest.com/gumgum-granted-first-mrc-accreditation-for-brand-safety-and-contextual-targeting-for-ctv.html "GumGum Granted First MRC Accreditation for Brand Safety and Contextual Targeting For CTV"), analyse and deliver insights that can positively impact the business’ bottom line. It has the power to provide a clear roadmap to [success for marketers](https://www.financedigest.com/flexibility-the-key-to-success-in-the-current-lending-market.html "Flexibility: the key to success in the current lending market"), researchers, or anyone who needs insights. These [valuable consumer insights keep](https://www.financedigest.com/the-pull-of-the-past-1-in-5-keep-items-they-think-will-be-valuable-in-the-future.html "The pull of the past! 1 in 5 keep items they think will be valuable in the future") businesses on the pulse of people’s changing sentiments so that they can understand what they care about, and _how_ to best appeal to them through personalised experiences and targeted messaging. The acceleration of digital adoption in the last year has been quite remarkable. The [role of technology has been fundamental in sustaining business](https://www.financedigest.com/the-evolving-role-of-the-cfo-from-scorekeeper-to-business-partner.html "The Evolving Role of the CFO: From Scorekeeper to Business Partner") and life as we now know it. It is clear that the future of [business innovation and success](https://www.financedigest.com/tips-on-how-startups-can-turn-their-business-into-a-success.html "Tips on how startups can turn their business into a success") will be dependent on tech as the cornerstone of global leadership. Not only does that change the way in which we operate, but it also changes the fundamentals of how we interact with our customers. It is no longer good enough to make assumptions and hypotheses about what our customers might be interested in — to properly and effectively engage them, today’s [business needs](https://www.financedigest.com/what-is-premises-liability-coverage-and-why-does-your-business-need-it.html "What is Premises Liability Coverage … and Why Does Your Business Need It?") to _understand_ them. Measuring actual consumer intent has become increasingly more important. **The Role of ResTech in Today’s Global Markets** What does the introduction of ResTech as a sector mean for the markets, investors, analysts and partners — how do these stakeholders [create value](https://www.financedigest.com/creating-sustainable-value-through-responsible-investment.html "Creating sustainable value through responsible investment") that will benefit customers going forward? As more businesses adopt a software-first approach, automation technology that can determine consumer sentiment in real-time is hugely advantageous for understanding the customer journey, and will be more than [business critical to the success](https://www.financedigest.com/acca-sets-out-magnificent-seven-attributes-vital-to-success-in-modern-business.html "ACCA Sets Out ‘Magnificent Seven’ Attributes Vital to Success in Modern Business") of the industry going forward. But, to get to this point, ResTech needs a common vocabulary, a uniform process that will benefit the entire ecosystem. Until now, there has been a limited understanding of the business models within ResTech — how research works and how transactions are made. Educating the market is necessary to help investors and analysts understand the potential for growth. This is particularly so in the UK and Europe, where investors are very different to those in the US. Market research has not been on the radar of UK and European investors — let alone ResTech. There has been a steep learning curve and solid time commitment to engage with investors earlier on, to allow them to become more familiar with the market, the business model, and the sector overall. A uniform business model, a common vernacular and a joint approach for the ResTech sector could create a centre of gravity whereby all stakeholders within the ecosystem understand the potential, the opportunity, and the real drivers for growth. What this means is that we can expect to see key factors such as cutting edge research, skilled engineering, [top tech talent and operators who know how to drive sustainable business against the backdrop of a delicate global economy pique investor](https://www.financedigest.com/top-ten-biggest-mistakes-by-novice-investors-and-how-to-avoid-them.html "TOP TEN BIGGEST MISTAKES BY NOVICE INVESTORS – AND HOW TO AVOID THEM") interest. **[Lessons To Learn](https://www.financedigest.com/learning-the-lessons-of-the-bangladesh-bank-heist.html "LEARNING THE LESSONS OF THE BANGLADESH BANK HEIST") and Moving Forward** The [lessons that can be learned](https://www.financedigest.com/3-investing-lessons-you-can-learn-from-still-evolving-pandemic.html "3 Investing lessons you can learn from still-evolving pandemic") from the growing UK tech industry can help define ResTech, its business models, and market opportunities and valuations. COVID-19 has removed the traditional client objections and barriers to entry to adopting a “tech/software first” approach. Time, flexibility, and the [bottom line](https://www.financedigest.com/the-severe-impact-of-downtime-on-companies-bottom-lines.html "The severe impact of downtime on companies’ bottom lines") have become ever more important as the traditional rate of adoption is replaced by a new kind of disruption with a shape that mirrors a cliff edge more than a bell curve: the shark fin model. This model has been driven by the sheer wall of innovation being constantly introduced to the market, combined with the rapid spread of information amongst consumers via social media and streaming video channels, which [accelerates the rate of adoption and lowers the barrier to entry](https://www.financedigest.com/final-call-for-entries-to-tech-start-up-accelerator.html "FINAL CALL FOR ENTRIES TO TECH START-UP ACCELERATOR"). The ramifications of changing [consumer behaviours](https://www.financedigest.com/gumgum-powers-into-europe-as-new-research-shows-consumers-reject-behavioural-ads.html "GumGum Powers into Europe as New Research Shows Consumers Reject Behavioural Ads") driving this new idea behind the shark fin model are vast. For one, the product [innovation cycle has shortened while consumer purchase decisions have spiked at a rate that is near impossible to keep pace](https://www.financedigest.com/2021-predictions-less-fraud-shifting-consumer-behaviour-and-accelerating-pace-of-innovation.html "2021 predictions: less fraud, shifting consumer behaviour and accelerating pace of innovation") with. Add to this the [challenge brands and businesses](https://www.financedigest.com/new-business-launches-to-support-it-professionalsfacing-mission-critcial-sector-challenges.html "NEW BUSINESS LAUNCHES TO SUPPORT IT PROFESSIONALSFACING MISSION CRITCIAL SECTOR CHALLENGES") increasingly face today of trying to identify fads versus trends without an understanding of deep insights and cultural data points to paint the whole picture. This is the exact tipping point where ResTech can present a perfect opportunity for business, for the investment market, and for the future of the global economy as we continue to [weather quite a storm](https://www.financedigest.com/how-digital-commerce-merchants-can-weather-the-economic-storm.html "How Digital Commerce Merchants Can Weather the Economic Storm"). The time has never been better for market research to own its [future — to be bold and disruptive in placing tech innovation](https://www.financedigest.com/future-cheque-clearing-model-places-emphasis-on-speed-and-innovation.html "FUTURE CHEQUE CLEARING MODEL PLACES EMPHASIS ON SPEED AND INNOVATION") at its heart to help today’s brands and businesses provide real-time clarity into the thoughts, opinions, and feelings of the world. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---