Technology companies are regaining their pre-eminence with venture-capital firms, promising a continuing flow of innovation and enhancements for the IT infrastructure, according to several venture-capital reports last week.
Not only did national IT investment tick upward, but the technology cradle of the Silicon Valley saw a marked improvement. Instead of continuing a steep decline from the peak of $35 billion in 2000, investment in San Francisco Bay area technology companies regained its forward momentum in 2004. Although the Silicon Valley has experienced a decline in technology jobs, startups are being financed at a rapid clip.
VCs earmarked most of the money for Silicon Valley software, semiconductor, networking, and hardware companies, increasing their investments last year by 15% to $7.1 billion, says Doug Henton, president of Collaborative Economics, an economics consulting firm. Henton is a preparer of the Silicon Valley Index, produced for 10 years by Joint Venture, a not-for-profit organization.
"We're back to the preboom levels," Henton says. He doesn't expect venture funding in Silicon Valley to experience another colossal spike like the one that occurred in 2000. Yet, companies receiving funds are technology innovators that have undergone a thorough review. "Instead of handing money hand over foot," he says, "we're getting better business plans."
Silicon Valley is attracting a higher proportion of venture capital today than it a decade ago. In 1995, the region represented 14% of the total; today it represents 35%.
New sources of capital for Silicon Valley ventures are coming from Washington--including NASA and the departments of Defense and Homeland Security--as federal agencies seek out advanced technologies. Henton says government IT investments reached $3.4 billion in 2003, the latest year for which figures are available, up from a little over $1 billion a year earlier.
How Enterprises Are Attacking the IT Security EnterpriseTo learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Infographic: The State of DevOps in 2017Is DevOps helping organizations reduce costs and time-to-market for software releases? What's getting in the way of DevOps adoption? Find out in this InformationWeek and Interop ITX infographic on the state of DevOps in 2017.
Digital Transformation Myths & TruthsTransformation is on every IT organization's to-do list, but effectively transforming IT means a major shift in technology as well as business models and culture. In this IT Trend Report, we examine some of the misconceptions of digital transformation and look at steps you can take to succeed technically and culturally.