Alternative energy appeals to VCs
Venture capitalists are betting more on new kinds of companies, a report released Tuesday morning shows. It’s the second study in a week that shows venture capitalists grew more willing in 2010 to invest in entrepreneurs.
But today's Dow Jones VentureSource study also shows VCs popping more money into new sectors. Though IT and health care claimed their traditional places as the biggest magnets for venture capital, those traditional areas are being challenged by the rise of consumer and business Web services, as well as a return to favor for alternative energy.
"The health care and IT industries accounted for more than half of venture investment in 2010 but are not currently driving the growth," said Jessica Canning, global research director, Dow Jones VentureSource, in a release. "Investment in business technologies, consumer solutions and energy companies gained the most traction in the last year."
Investment in energy companies rebounded strongly. Energy and utility deals amounted to $2.5 billion, a 39 percent jump from last year.
All of it points to a more confident venture-capital scene than has been the case in recent years, and one more willing to go out on a limb beyond venture capitalists’ traditional comfort zones.
Read the full story in Portfolio.com.
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