What's hot in VC for 2002

Gregory Alan Bolcer gbolcer@endeavors.com
Tue, 01 Jan 2002 10:02:46 -0800


Gartner estimates by past 6 months of investment, 
this is what's going to be hot in 2002 both
in raw dollars and average amounts per sector. 
 

 o Network infrastructure and telecommunications were in the top five 
   for all three categories: total aggregate investment, average 
   investment per company and number of companies. 
 o Business applications/software and systems software were in the 
   top five for both total aggregate dollars invested and the number 
   of companies invested in. 
 o Software services was in the top five for total number of 
   companies invested in. 
 o Cable was in the top five for average amount funded per company. 
 o Wireless was in the top five for total aggregate funds invested. 

The bottom line is "infrastructure" for any of these sectors
is considered hot.  

Their model is pretty dismal in that they gauged the definition
of "hot" by how much things didn't decline in addition to
several other funding factors.  

  o The overall decline in technology investment funds has been 62%
  o The overall decline in the average amount of funding has been 39%
  o The overall decline in technology companies funded has been 38%

The gauged that any individual sector outperforming these
overall trends should be deemed hot. 

Greg