* Where venture dollars are going (consensus): Open Source software, wireless, digital media, and consumer-facing technologies; other areas (no consensus): VOIP, on-line business services, Internet 3.0, analytics/business intelligence, enablers for on-demand computing
* Areas to avoid: security, enterprise software; digital media is probably on the cusp of being over-invested
* Do more for less: If a start-up might have commanded $35 million in total funding three years ago, VCs expect them to do it for $20 million today
* Companies that get funding: An experienced, hungry, and patient management team, clear market opportunity, defensible IP, a capital-efficient model, and an unrelenting focus (from CEO on down) on getting the sale
Arun Natarajan is the Editor of TSJ Media, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of TSJ Media's Venture Intelligence India newsletters and reports.