Markets outlook: capital allocation toward emerging technology

The last two years have seen a marked shift in how investors evaluate technology-driven growth stories, with a much greater emphasis on unit economics and path to profitability.

For enterprises making significant technology investments, this means the business case discipline once reserved for major capital projects now needs to extend to digital initiatives as well.

We are advising clients to build technology investment cases with the same rigour as a capital expenditure proposal, including explicit assumptions and sensitivity analysis.