Tech IPO Market Returns; Web 2.0 Takes on Real Definition and the Internet Emerges as a Replacement for TV
(note: this is the second of a series of 4 VC predictions for 2007)
By Roger Krakoff, Sigma Partners
1. Wireless will continue to increasingly become the focus of computing. Faster networks, more powerful phones with better screens and keyboard/inputs will permit a further separation from traditional desktop (even laptop) computing. On the consumer side GPS enabled solutions will increasingly power smart social and shopping applications that will enrich the consumer experience.
2. Web 2.0 will begin to take on real definition. The promise of a new programming and computing paradigm called Web 2.0 will begin to take commercial shape as many of these start-ups emerge from incubation to challenge existing vendors in a wide variety of markets including content management, collaboration, e-learning, desktop applications and even some traditional enterprise solutions.
3. The Tech IPO market returns. Mnay more technology companies than have been the case in the last few years look to go public. The forces behind this are clear. More than a handful of firms have been patient growing their revenues well in excess of $100m now realize the best potential return to their stakeholders is an IPO / Wall Street is anxious for new issues to represent / With a public currency companies can "roll-up" markets to achieve true $1 billion scale.
4. Big Media will become aggressive in response to the many start-ups looking to take their turf. Seeing the incursion of aggressive early stage as well as new fangled internet media companies like Google and Yahoo, traditional media companies will look to aggressively buy capabilities and graft on new capabilities to their business models rather than risk becoming irrelevant.
5. The Internet emerges as the replacement for the traditional TV. With the potential to have millions of channels on the Internet AND each and every one of us can now become an over the air producer of content the Web becomes the new broadcast network. Big TV broadcasters fear this but it is the genie out of the bottle. Go long this one...
6. Open Source/SaaS/VOIP all continue to be important on an accelerating pace...Just don't get in their way or watch out!!!
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