When we talk about growing businesses, we also talk about venture capital. Whether you’re raising money for your own startup or looking for options in which to invest, there are a number of venture capital trends coming up in 2016 that are worth recognizing. We are currently in the seventh year of the US equity surge, making this the longest surge since the World War II era. For this reason, we can expect some new methodologies to come about for those partaking in venture capital. Here are a few trends that we can expect to see in the landscape of venture capital in 2016.

1) An increase in the number of corporate deals

A number of corporations are investing in smaller companies in order to gain inspiration for their own innovation processes. By investing in small companies, these corporations are not only getting rewarded in terms of financial returns. They are also generating stronger suppliers, testing products for their own use, reducing the risk of innovation, and creating acquisitions that are less expensive.

In 2015, one out of five deals in the United States and Europe involved corporate venture. In Asia, corporate venture participated in one out of three deals. In 2016, founders will be continuing to study the various ways to attract and engage investors with deep pockets. This results in great competition, leading traditional financial VCs to have to work harder to stand out to entrepreneurs.

2) An increase in the investor appreciation that small funds earn

Due to the growing corporate presence within the largest deals and record startup valuations, the opportunity for big returns has somewhat decreased. The change will help to alter the world of venture capital in 2016. Before 2000, the largest ten funds received the majority of the returns, but in this is no longer the case.

In today’s venture environment, smaller funds are gaining some of the highest returns. According to a report from Cambridge Associates, the idea that most venture industry performance is generated by the top 10 firms is an unsupported and unfounded claim. If investors believe this myth, they can miss out on valuable opportunities.

3) An increase of gender and racial diversity among investors and entrepreneurs

Increased attention has been driven to the level of diversity on each investment team, and how it affects returns. Companies that are lacking female talent, for example, are suffering. As a result, the Information and Social Capital has put out The Future List, a compilation of statistics gathered from 6,000 data points on 552 senior investment professionals from 71 firms. This data used diversity to determine which investors are best prepared to benefit from future trends.

It has also been proven that gender diversity on founding teams is largely associated with top performance. Studies show that teams with female founders outperform exclusively male teams financially by 63%. There is also likely to be an increase in racial diversity among entrepreneurs. 41% of new entrepreneurs in 2015 were non-white. It is expected that in 2016, the majority of entrepreneurs seeking investments will be either non-white, female or both.

This year will be an exciting one for venture capital. We can use trends in the past to predict what will occur, but only time will tell how the landscape of venture capital will change. If you are looking to gain investors for your growing business, or even if you are looking to invest, make sure to keep these trends in mind so that you can stay informed and get a leg up on the competition.

Since the end of 2015, a year in which the technological sector reached new heights and venture capital flourished, there has been some trepidation surrounding venture capital’s future. Last year, entrepreneurs churned out a surprising number of unicorn companies, which spurred investors to put more stake in startup companies. The companies did not disappoint – they created new online lending platforms, all sorts of wearable technology, and even online education became a more profitable and popular platform. 2016 has not been so fortuitous, as investors are taking a step back and asking ‘what next?’

The focal point of this year’s investing will be in late stage investors, as venture capital investments have had a tumultuous start in the first month of this new year. This particular crop of investors will most likely put their money toward startups that have already somewhat established themselves. The technological sector is still growing, and it makes sense that investors will want to further shape this field rather than put their money in something completely new. It is a safer bet.

It is also safe to say that unicorn companies will be in shorter supply in 2016. Investors have shown that they are not willing to take such financial risks anymore, and will focus their finances on companies with more realistic business models. Also, there will be a focus on the unicorns of 2015, and, as is already beginning to show, their increasing financial needs. Investors have found themselves forced to invest more money to keep the unicorns afloat, which is another reason they have become wary of putting their money in any new ‘unicorn’ type companies.

The IPO market is also looking quite dismal, and, although it may not bounce back, it will not necessarily become worse. Companies in the technological sphere who have a good grasp on their finances will be drivers in this market. This means that startups with already-existing business models that have been proven to be successful will obtain the most venture capital investments.

Education Technology is a sector that does not look like its value will decrease anytime soon. It is especially relevant because education is a hot topic in ongoing presidential debates. I predict that venture capitalists will flock toward companies that emerge to create educative technology, including virtual reality devices.

Overall, the beginning of this year has been disheartening for companies and venture capitalists alike. While venture capital investments may not take off again this year like they did in the last, there is a good chance that venture capital investments will bounce back in fields that are already established as the year progresses.

For further reading on this subject, read CNBC’s article about Venture Capital in 2016.