Technology & Cyber Strategy for the Mergers & Acquisitions Industry

Looking towards the future is an inevitable aspect of VC technology investing,and while we all dislike catch phrases or "trends-dujour", it is critical to understand the implications of the next looming step in Web evolution ( download this primer here ). Problem : The Internet is currently a jumble of data categorized for people BUT searched by computers . Solution : Create a system that allows computers to understand the meaning of the data the way people understand language like using words to form a sentence. Web 3.0 is the unification of disparate data systems thru standardization making the Internet intuitive for people and computers alike, hence, the "Semantic Web" which emphasizes the real meaning of data on the Internet. The goal is to treat data objects like ideas and real language thereby achieving the real meaning of the "information age". Here are the highlights of the direction of Web 3.0 and what it will mean to any V...

Another area of concern is the lack of appropriate tax incentive policy crucial to encouraging new business investment. Most Chinese based VC type firms pay exorbitant tax rates which discourages their operation thereby limiting new business investment.             The China economy is structured differently in many ways and they currently do not have the equivalent of a US NASDAQ system. VC backed firms must meet strict requirements in order to function on the current local stock market. Further, there is no way for institutional investors to trade shares in the existing public markets in China .   A domestic exit option for venture-funded companies does not exist which poses a critically difficult challenge for investment vehicles.             On a less technical note there are cultural differences to be acknowledged as well as accepted norms that are established...

Venture Capital Potential in the Middle Kingdom While the economic possibilities and promises of China often seem limitless according to the media many serious Western investors also share this unbridled optimism. One area in particular, venture capital, has demonstrated a commitment to bringing the potential of China based investments to fruition. This attempt to tap the benefits of bridging the East and West via a digital silk road is more complex than is generally portrayed by the eager media. China still remains a unique and sometimes implacable culture that offers many obstacles to the over-eager Western investor seeking to extract her resources. To understand the reality of the situation an assessment of current VC trends along with the investment trends and opportunities in China must be performed. Then an understanding of the dynamics of foreign investment in China along with the issues of intellectual property must be gained. Finally, there is the exit strategy dilemma fro...

Venture Capital Investment Summary for Q1 + Q2 2009, the stats so far: 2009 funds invested increased overall, but currently at pre-DotCom levels Total of $7 billion in first half of 2009 in over 1200 deals Spike in Seed & Early Stage Investments Highest percentage from Life Science Investment CleanTech still strong and growing stronger spurred by political and social impetus International investing on the rise as Globalism lessens geographic disparity Sources: PwC/NVCA MoneyTree™ Report based on data from Thomson Reuters Deloitte: Global Trends in Venture Capital 2009 Global Report

Facebook has the greatest blessing and curse of a Web 2.0 company - a skyrocketing and captured community of eyeballs but no strategy to monetize it. While there is no clear answer, I strongly believe there are some critical signposts that might lead us in the right direction to understand how Facebook can monetize its constituency. It took Google several years of providing a revolutionary search service and gaining a monumental following before it created AdWords which resulted in $10Bn per year revenue. Facebook has been striving for a similarly suitable model but has been wasting time with traditional banner ads that undermine its next-gen potential, until now . The next evolutionary step of a more dynamic ad-based system known at Engagement Ads ( engagement marketing ) is a unique convergence of social networking, advertising & market research. The purpose of these ads is to use video, polls and other interactive media to direct visitors to a specific Facebook Page. The ...

No doubt, it is a hot, hot market and apparently somewhat recession proof. Video Games and, by extension, Virtual Entertainment(basically a game but based on a paradigm of experience rather than score/achievement) are a huge market with a worldwide projected value of $47Bn by 2010 under a CAGR of 14%(PwC, 2008). Great potential and a huge area for VCs to invest in. In 2008, funding alone for games & virtual worlds reached almost $1Bn from Venture & Angel sources which went into a approximately 110 firms(VentureBeat, April 26th 2009). With that in mind, it is a good market for any VC to be aware of so here are some thoughts about innovations that might make for good investments: Mobile Gaming / Wireless - not wireless game controllers, but actual wireless/mobile game versions that can be ported over to PDA/Cell device so that people can continue to play while on the subway or training to work or breaking for lunch. Packet or "chapter" technology that can allow for peo...

I was discussing the uses of social media for businesses recently with a VC contact of mine in NYC. A by-product from the disconnect that exists between social and business media, I feel there is a missing piece of the puzzle here that Facebook could crack and establish a more direct stream of revenue. Facebook is a person-centric platform in which a user's profile or "Face" is the brand which is the whole point of social networking. This differs from the MySpace strategy which simply allows homepages to be built around a business presence and allows almost complete customization. Facebook limits the changes but benefits from the user-defined & private network experience while still allowing a person to become a fan. What Facebook does not allow is the creation of actual facebook profile or homepages for a business (eg a company does not have a "face"). To this end, Facebook allows Pages or News Feeds or Events to be created as secondary tiers for a person...