VC still digging tech
CNET reported today that VC money continues to pour into tech-based products and companies. Venture investing in technology companies rose to $11.3 billion last year, reversing three years of consecutive declines.
Though the figure still pales in comparison to the go-go days of 2000, it does reflect a return to a more normalized pattern of venture investing, said Matt Garlick, VentureOne research manager. "A lot of the trouble that came with the postbubble has erased itself out, so we'll see more investments in early stage companies, as well as continued funding in companies that have received funding in the past," Garlick said. Electronics and information services captured the largest increases in tech venture investments last year, as consumer gadgets and consumer-related Internet sites grabbed VCs' attention.
"Consumer electronics were big drivers across all IT investing, and information services--with the strong performance of Google's IPO--drew more attention to that space," Garlick said. VC investments across all industries last year reached $20.4 billion, up 8 percent from the previous year.
The same report listed
eHarmony as one of the companies that's gotten strong VC backing over the last year. eHarmony--founded in 1998--is an online dating service that stands apart from its competitors through its matching technology, scientific expertise, loyal customer base, and the
29 dimensions of relationship success.
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