How to find out where VC's are investing?

I've been searching on the web to find bits and pieces of information that would tell me where VC's are investing their money. I haven't had any good luck. The best direct answers I've gotten are through news articles that some analyst mentions what the trends are.

I used to get a pretty good indication of industries the VCs are spending their money on (with some specific deals), through www.ipo.com however, that site no longer exists :(

Does anyone know or heard of a site or service that would provide this info?

I'm mainly interested in this information because I'd like to start a business and I would prefer to position it to be in an industry that is being invested with VC's.

Thanks!

RN
Tuesday, March 16, 2004

After reading Cringely's article on venture capital a few weeks back, I started looking around and liked these ones.  Plenty of links at each to waste all day on:
http://www.corante.com/venture/
http://www.ventureblog.com/

If you're willing to pay, then I think this one contains info on companies that VC firms are actively pursuing:
http://www.insidervc.com/

Nick
Tuesday, March 16, 2004

Why do you want to be in an industry that has VC's investing in it?

VC's are bad for almost any small business, while competing against companies which have VC backing and thus far more money to burn than you isn't going to be fun.

Mr Jack
Tuesday, March 16, 2004

The best way is to go to the web sites of VCs and see who they are investing in.  Not all of them will list their companies but quite a few do.

 
Tuesday, March 16, 2004

Starting a business by finding out where the money is being invested is a very bad idea. Implicit in this is that VCs know what businesses will be profitable. History has shown that this is not always the case.

Find where you can add value, and then convince someone to invest in it. It might be a more of a slog, but I would postulate that you will do better than chasing the money.

Furthermore, like someone has already said, if you find out where VCs are investing, you are already a few months/years behind (VC will traditionally only come in at round 2). Throw in the fact that you are competing with already funded competitors, and it is not a pretty sight.

I would rather suggest that you find out where VCs are competing just so you know what areas to stay away from.

Tapiwa
Tuesday, March 16, 2004

So your business plan is "I'll do whatever as long as I get VC capital"? With entrepreneurs like that I'm sure the economy is in good hands.

Just me (Sir to you)
Tuesday, March 16, 2004

Why do you even want VC money? Are you going to compete against Amazon.com? IBM? Cisco? Johnson & Johnson?

Or are you looking for free money?

I recommend figure out your business first and see if you even need VC money at all. It's better to avoid external money at all cost, especially the kind that comes with lots of strings attached.

entell
Tuesday, March 16, 2004

I highly recommend http://www.vcbuzz.com if you just want to get the list of companies that receive funding. I check that site from time to time.

Anon
Tuesday, March 16, 2004

http://venturereporter.net/ has all the data but you will have to pay big time.

Joel Spolsky
Fog Creek Software
Tuesday, March 16, 2004

Thank you all for your thoughts..
The fact is that I feel there is a wide range of areas that I  can concentrate on and (I believe) I can succeed. I want to see where VC's are funding so I can use that as another data point to see where things are happening. After all, if a VC funds a company, they've been convinced that there is a business model and there's a good chance of a high return (maybe I'm being naive in this theory). It's not a guarantee, I understand.

RN
Tuesday, March 16, 2004

"After all, if a VC funds a company, they've been convinced that there is a business model and there's a good chance of a high return"

... for the company THEY already invested in, not for your company, which will be a competitor.

I echo all the points above about "why would you want VC money".


But, hey, it's your time. Good luck!

Mr. Analogy  (formerly The real Entrepreneur)
Tuesday, March 16, 2004

VC capital works when the interests of your venture coincide with the VC's interests.  In good years VC's can live with 1 in 20 investments paying, because that one will return far more than is lost with the 20.  In not so good years they'll implement their own management faster than you can wipe your nose.

VC means they own the company (or as much of it as is worth owning), until you pay them back, tu capisci?

Simon Lucy
Tuesday, March 16, 2004

According to this week's edition of BusinessWeek, the VC money is on its way to China.

Time to brush up on that Mandarin :-)

Tapiwa
Wednesday, March 17, 2004

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