My belief is that VC's are the 'canaries in the coal mine' of what is going to happen in business.

Regardless of the fact that no one can be perfect and so they make bad bets from time to time, the evidence is in the fact that VC firms continue to exist and continue to thrive. And what they do is really Capitalism 101. They look at where the trends are and they follow them.

I just read a story from SF Gate about Bay Area investments by VC's. It says that in the first quarter of 2006 172 companies from the Bay Area raised a total of US$1.9 Billion. As you would expect companies in the energy sector are benefitting from the investments. But internet and media companies are well and truly on the positive trend curve. This trend was echoed by Mark Kvamme in his keynote address at Adtech in SF a couple of weeks ago. He talked about a massive shift of advertising to the on line space. His prediction was that 50% of the discretionary advertising spend in the US would be spent on line by the end of 2008 and that this would represent $30 Billion of spend! 

Like I said, if you follow where the VC's are putting their money and also figure out why, you should be able to take advantage of the trend.

This entry was posted on May 5, 2006 at 2:08 pm. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Posted in Main Page by Chris Gilbey No Comments Yet