VCs Bet on Consumer Gadgets

WSJ writes:

The consumer-investing craze is being driven, in part, by the widespread availability of high-speed Internet connections in today’s homes. That’s opened up a low-cost delivery channel for Web services, such as photo-sharing sites, and inspired the creation of gizmos for handling digital music and video.

Another factor pushing the venture capitalists: Business has slowed at start-ups that focus on selling old-style, licensed software, semiconductors and telecommunications equipment to businesses. These industries traditionally have delivered big returns to venture investors, but over the past few years, many big companies have reduced their technology budgets and aren’t buying as much fancy software or telecom gear.

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.