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January 30, 2004

Wi-Fi tops list of what's NOT hot among US VCs

Forbes magazines asked several top VCs in the US to name their picks for the best and worst sectors for investments in 2004. David Strohm of Greylock, Daniel Nova of Highland Capital Partners, and Todd Dagres of Battery Ventures were unanimous in naming Wi-Fi as the area that they will NOT fund. "Startups will have a hard time competing against titans like Cisco and Intel," said Strohm. "Wi-Fi chip sets are overfunded; technology like this comes along and all the VCs think they need to have one," adds Dagres.

Kevin Compton of Kleiner Perkins Caufield & Byers said he would avoid companies trying to build spam filters. Reason: "Microsoft is going to take care of that". Dixon Doll of Doll Capital Management says he would stay away from "storage area networks and social networking outfits".

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