by: Robert Ackerman, co-founder, Allegis Capital
Venture capital is not dead. Despite the protests from the Kauffman Foundation and others about its demise, it is very much alive.
There are a number of important factors that suggest venture returns are poised for a skyward trajectory.
First and foremost is the incredible new era of entrepreneurial innovation and creativity – a Cambrian Explosion within the technology universe. The Cambrian Explosion refers to a period of evolutionary innovation about 500 million years ago when most forms of life ceased to exist and entirely new life forms began to develop. That’s exactly what’s happening in the innovation economy today.
Groundbreaking developments in cloud computing, social media and mobile technologies are giving rise to an entirely new technology ecosystem. What’s really interesting is that innovation is pushing out in all directions simultaneously. For young companies, the opportunity to disrupt the status quo and create value is unprecedented. And from an investor’s perspective in Silicon Valley, it does not get much better than that.
What’s more, there is a security overlay that must now sit on top of all of these breathtaking innovations. To a large degree, the high-tech universe was built on computing, communications, and storage—the three legs of the innovation stool. Security has become the fourth leg of this innovation stool because of the interconnected nature of the global economy and the untold risks associated with the sharing of information…
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