Venture Capital

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Shifts in the Venture Capital Market. If you remember the dot-com bubble, the fact that more than 50 percent of all venture capital dollars raised in 2000 were between software, telecommunications and computer hardware companies shouldn’t be surprising.

Shifts in the Venture Capital Market

What’s interesting is to see how the composition of the venture capital market has changed since that bubble burst. Venture Capital Investment History <br /><a href="#"><img alt="Venture Capital Investment History " src="http:&#47;&#47;public.tableausoftware.com&#47;static&#47;images&#47;vc&#47;vcq1_2011&#47;VentureCapQ1_11&#47;1_rss.png" height="100%" /></a> When comparing the amount raised by sector as a percentage of the total raised, we can see that while software remains relatively steady and a core part of the market, computer hardware and telecommunications have taken a hit. Of course, this has also opened the door for other industries to grow and take hold, notably biotech, energy and health. Questioning the Performance of 2011 IPOs.

The IPO market can be deceiving.

Questioning the Performance of 2011 IPOs

If you look strictly at how much capital the market has raised, you could easily walk away believing that investor confidence is at an all-time high. Companies have raised $24.2b year-to-date, more than double the $9b raised in the first half of 2010 (and we haven’t even finished the second quarter yet.). The highly anticipated LinkedIn IPO made such a huge splash, it raised concerns about tech bubble 2.0.

What Happened to the Future? « Founders Fund. We invest in smart people solving difficult problems, often difficult scientific or engineering problems.

What Happened to the Future? « Founders Fund

Here’s why: We have two primary and related interests: Finding ways to support technological development (technology is the fundamental driver of growth in the industrialized world).Earning outstanding returns for our investors. From the 1960s through the 1990s, venture capital was an excellent way to pursue these twin interests. From 1999 through the present, the industry has posted negative mean and median returns, with only a handful of funds having done very well.

To understand why VC has done so poorly, it helps to approach the future through the lens of VC portfolios during the industry’s heyday, comparing past portfolios to portfolios as they exist today. In the late 1990s, venture portfolios began to reflect a different sort of future. Not all technology is created equal: there is a difference between Pong and the Concorde or, less glibly, between Intel and Pets.com.

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First Day IPO Pops. In light of today’s LinkedIn (LNKD) double, I want to refer you to this spectacular act of research by Prof.

First Day IPO Pops

Jay R. Ritter of the University of Florida, who reviewed the initial public offerings (IPOs) of common stock ( >$5.00 and proceeds >$5 million) of all non-ADR operating companies during 1975-2004 that at least doubled in price on the first day of trading. The ten biggest first-day percentage increases are: 1. Va Linux (12/09/99) 697.50% 2. Professor Ritter’s full research piece has 100s of IPO first day price pops, and makes for fascinating reading. click for full research piece Category: Investing, Markets, Psychology. Top Trends of 2011: Second Screen Apps. This week we're reviewing five trends that have helped define 2011.

Top Trends of 2011: Second Screen Apps

So far we've covered online privacy, group messaging and HTML5. Today we're looking at a still emerging trend, but one which is (pardon the pun) very much worth watching: second screen apps. By that we mean apps that run on your smartphone or tablet device and complement your television viewing. Over 2011, second screen apps have continued their push into the living room. Watching TV used to be a passive activity, but now the Web and devices like Android phones and the iPad have made it interactive. According to a study published in January by Yahoo's advertising division, 86% of people who use the mobile Internet use their mobile device while watching television. Social TV Despite the increasing use of time-shifting devices like DVRs and TiVO - which allow you to record and watch TV shows at any time - there has been a lot of growth in synchronous social networking around TV shows.

TV Tweeting But Wait, There's More... The Venture Capital Revival. There have been a number of narratives in circulation over the last year or so: the "we're in a tech bubble" (or "we're not in a tech bubble") narrative, the "venture capital is in decline" narrative (or "venture capital is broken").

The Venture Capital Revival

So here's a new one to add to the mix: we're in a "venture capital revival. " That's the argument being made by Clearstone Venture Partner's Managing Director William Quigley. His 50-page report, released today, chronicles the changes to venture capital over the past decade and ends, not with an assessment about the end of VC but rather the possibilities for a stronger future. The report identifies several factors that make conditions better today than for investors than they have been in over a deade. There are fewer VCs, for one thing, and a new era for technology startups has emerged. Quigley's report contends that this VC revival will require venture capital to change.