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January 06, 2009

What's Changed in Silicon Valley

The New York Times has an article "about the types of companies that will receive some of the estimated $31 billion venture capital firms raised in 2008".
WEB 2.0 HEYDAY IS OVER. Venture capitalists once poured money into Web sites that were free to users and that made money selling advertisements. If the site involved social networking, so much the better. But as growth in ad spending online cools and social networking becomes commonplace, the days of trying to be the next YouTube, Facebook or Yelp are over, said Jeremy Liew, managing director at Lightspeed Venture Partners...Even Accel, an early investor in Facebook, might have turned that company away if it approached the firm today, said Theresia Gouw Ranzetta, an Accel partner.

CLEAN TECH GETS REALISTIC. Venture capitalists are still chasing clean technology. Through September, $3 billion was invested in technologies that create alternative energy and conserve power, up from $1.9 billion the year before, according to the National Venture Capital Association. But big, expensive projects like building factories to manufacture solar panels or biofuels are falling out of favor...Instead, some venture capitalists are looking at technologies that monitor energy demand, like software that tracks and regulates a building’s energy use.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of information and networking services to the private equity and venture capital ecosystem in India. View free samples of Venture Intelligence newsletters and reports. Email the author at arun@ventureintelligence.in