Incrementalism and "The New New Thing"
With all the venture capital moving around in the Silicon Valley, where is the real innovation?
By Jeff Nolan, NewsGator
Apr. 21, 2008
The latest venture capital numbers are in and guess what? Software startups drew another $1.3 billion in investment during first quarter. I'm wondering, "Where is "'The New New Thing'?"
Today's venture capitalists are funneling a lot of money into businesses which are only incremental improvements over what the current market offers. The situation may leave the technology industry in another downward spiral if none of the "incremental" ventures hit it big and no other genuine innovation appears soon.
Another Big Quarter for Software VC
There is a lot of money sloshing around the Silicon Valley. During first quarter, $1.26 billion flowed into software ventures.
That's only slightly less that fourth quarter activity while VC investment overall dropped more than 7 percent.
A look at the trend over the past several years shows software investment is holding fairly steady. In fact, the number of startups funded grew from 219 in first quarter 2007 to 234 in 2008. Not bad for a struggling economy.
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Today's venture capitalists are funneling a lot of money into businesses which are only incremental improvements over what the current market offers. The situation may leave the technology industry in another downward spiral if none of the "incremental" ventures hit it big and no other genuine innovation appears soon.
Another Big Quarter for Software VC
There is a lot of money sloshing around the Silicon Valley. During first quarter, $1.26 billion flowed into software ventures.
That's only slightly less that fourth quarter activity while VC investment overall dropped more than 7 percent.
A look at the trend over the past several years shows software investment is holding fairly steady. In fact, the number of startups funded grew from 219 in first quarter 2007 to 234 in 2008. Not bad for a struggling economy.
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