Where US venture capitalists are investing this year

It might be hard to believe, but venture capitalists in the United States raised a whopping $US31 billion last year. So where are they going to spend it?

The New York Times has talked with a number of the industry’s heavy hitters to unearth some of the trends.

  • Web 2.0 sites that rely on advertising to make money (such as social networking sites) are likely to find it harder to get capital. Instead, investors are looking for sites that have multiple revenue streams, such as subscriptions or virtual goods.
  • Open-source software, web-based software and cloud computing are the hot trends – anything that allows customers to cut their hardware costs.
  • VCs are getting skeptical about mobile content and advertising and are instead sticking to proven money-makers, such as mobile carriers and accessory companies.
  • Clean-tech is still hot, although it’s unlikely that big projects such as renewable power plants or solar panel factories are going to attract much money.
  • Personalised healthcare is hot. America’s population – like Australia’s – is rapidly aging and VCs are looking for companies that can tap into this market.

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