Saturday, January 23, 2010

Wall Street Journal: Some Types of Silicon Valley Start-Ups Won't See Venture Capital

Networking/telecom is a capital intense sector with uncertain rewards in todays economic and political climate.

What is referred to as Information/Internet above is essentially software and web apps; they are much less capital intensive. These investments leverage the specialized knowledge of the entrepreneur and his/her team. When a VC invests in one of these ventures, the goal is to get in right before rapid growth (sales/profits/valuation).

Posted via web from admore's posterous

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