VCs say they’ll invest more in 2011 (Reuters)
The National Venture Captial Association and the Dow Jones VentureSource survey polled 330 venture capitalists in the U.S. and 180 CEOs of U.S.-based venture-backed companies between Nov. 29 and Dec. 10, 2010, looking for their views on where they see VC investment headed in the coming year.
The results look promising for the technology sector, with as many as 82 percent of VCs pouring funding into consumer internet and digital media, 80 percent into cloud computing, and 66 percent into mobile/telecom.
There has been some talk in the press about over-investment next year in technology and maybe another technology bubble in 2011. I don’t see that happening. However if we do start seeing flash and trash fake technology companies popping up with the CEO and CTO last jobs were waiting tables and bartending, I would say yes. I hope we have learned our lessons from the late 1990s on that waste of money, and talent.
I am concerned about the Cloud Service models, I see a model that can possibly be used by flash and trash fake technology companies to leverage a service that isn’t theirs to leverage. Example I purchase a salesforce.com service modify it to do something else, and resell it as a product and service under a different company, until salesforce.com finds out and shuts it down. I haven’t seen that yet, but I have heard of it.