Technology & Cyber Strategy for the Mergers & Acquisitions Industry

New Collaborative Technologies Not-All-That-New The messaging industry is highly fragmented but includes very sizable markets such as Email Security (projected at $6.7Bn by 2013, E-mail Security Market, 2009-2013, The Radicati Group, 2009 ) & Instant Messaging (forecasted at over $12Bn by 2013, Mobile Messaging Futures 2009-2013, Telecoms Market Research, 2008 ). A new, possibly disruptive, class of messaging platform is emerging and many are wondering how it might affect the market size from an investment standpoint. These platforms are known as collaborative messaging which are cross-breed of email, IMing and real time interaction with others, the poster-child being Google Wave.  The advent of collaborative technologies has given new dimensions to real-time productivity and communications for users worldwide. This segment of technology includes platforms like Etherpad, Shareflow, Microsoft SharePoint & Google Wave which allow multiple levels of interaction on a rea...

Private equity and venture capital firms often face the threat of risk within their portfolio companies, but are not always certain of their portfolio firm’s competency in this area. Risk Management within Information Technology is especially critical as it affects all operations and the eventual value of a portfolio company. CSC, Inc . specializes in helping investment firms make the best technology decisions for their portfolio company’s technology needs. This article serves as a primer for PE & VC firms who must ensure that their investments are secure and may need to proactively engage the IT management of their portfolio company. This primer can act as a template for those IT managers that are tasked with developing an IT risk management plan and who need guidelines for the process. It will also provide examples of how to implement each step and a validation structure for the investment firm to follow the process. The pervasive nature of technology has increasingly...

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 ...