Feeds

Tech funds dry up as VCs take a holiday

Comms companies worst hit

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

Venture capitalists continue to desert the US technology sector, according to research published by PricewaterhouseCoopers and VentureOne. PwC reckons that this year $30 billion will be invested in tech companies, compared to $89 billion last year.

Telcos, infrastructure companies and service providers are bearing the brunt, with investment falling from $6 billion to $1.7 billion.

"Many venture capitalists have taken advantage of the slowdown to take holidays," says Pwc's Tracy Lefteroff in the FT.

The FT warns that the lack of VC investment could stifle technology innovation, which many will find exquisitely ironic.

Many technology innovations were developed without any VC money whatsoever: it's Government largesse that contributed to the development of the Internet and the World Wide Web, for example, while the great speculative bubble of recent years was caused by VCs pouring billions into companies without a realistic business plan, on such technological innovations as FedEx'ing pet food around the country.

But then, they would say that, wouldn't they? ®

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.