Where the Bets Are looks at the state of venture capital:
The technology world is revving up again as venture capitalists seek out a new batch of young start-ups they hope will become the next Yahoo or eBay.Through the third quarter, venture capitalists have poured some $16.2 billion into 1,605 deals, according to VentureOne, an industry tracker owned by Dow Jones & Co., publisher of The Wall Street Journal. That’s a far cry from the $95 billion that flowed into start-ups at the height of the tech boom five years ago. But it’s on par with the $21.5 billion invested in 2004 and in keeping with the industry’s historical norms.
This time around, the VCs aren’t looking just to Internet start-ups or biotech firms for hot growth. Many are exploring new markets overseas, as well as underserved sectors such as alternative energy. Many also are placing their bets on more mature companies — start-ups that weathered the tech downturn and now boast a cool new product or, better yet, a profit.
Some trends playing out in VC:
- The China Strategy
- Clean Tech
- Digital Living Room
- New Kids on the Block
- Rock Stars
- Web 2.0
- Older and Wiser
- Adopting Orphans
- Telecom Comeback
- Late Exits