News Fix: Software Startups Take Over, Florida Moves Closer To Legalizing Smokable Medical Marijuana

Software is back. After more than 20 years of the internet and mobile technology serving as the driving force behind the most lucrative (and disruptive) startups, software is driving the next generation of unicorns (startups worth $1 billion), according to CB Insights – a data and analytics firm that uses its own special sauce of machine learning and intelligence analysts to track startups and venture capital (The New York Times).

So how did we end up back in 1994? CB Insights’ explanation is companies like Uber, Netflix and Airbnb used the internet and smartphones to turn old industries into mobile ones. And now that the sectors ripest for disruption have been modernized, there aren’t any obvious spaces to move into next. So instead the software industry is revisiting sectors that were largely ignored by the digital revolution or building software services for the Ubers and Airbnbs of the world.

CB Insights has identified startups working on farming software, scientific research collaboration and wedding planning as possibly the next generation of unicorns.

The News Fix doesn’t have machine learning or artificial intelligence to help it identify trends. But it does have common sense. And for a while now, the Fix’s common sense has been telling anyone who would listen that modernizing legacy sectors and systems is the next big thing. Our own Adam Sharp is completely on board with this line of thinking as well (Early Investing).

In addition, many of the old guard companies are not making the transition to modern digital technology well. Maybe they’re in too much debt, or maybe their software isn’t good enough. Either can be a death sentence.

This means a large percentage of the incumbents are vulnerable. Software is changing the way every business operates, and startups do software better than big companies. So they have a chance to step in and dominate.

So welcome to the party, CB Insights. What took you so long?

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