Few venture capitalists predicted the sharp downturn in the U.S. stock market, and many are hesitant to be overly bullish about 2001. I don't think we'll see a doubling of the money raised next year. Changes afoot Many say that 2001 is likely to see a shakeout in the venture niche itself. During the late '90s and in the first half of 2000, the promise of huge returns lured prominent executives, Wall Street analysts, business professors and regular folks to become venture capitalists. Now that the lure of quick riches has disappeared, experts say many are likely to return to their former professions.
Business plans are also likely to revert to their previous cycles.
Many venture capitalists say the IPO market of 2001 is likely to be populated by older, more established companies. It'll be more like four to six years, and they'll need to focus on creating longstanding businesses. As for the next hot segment, many venture capitalists are betting cautiously on wireless and Internet infrastructure companies. Some are even hopeful about a rebound for the moribund e-commerce niche. From our perspective it's a global world, and we're unlikely to invest in a company in Asia that isn't globally competitive.