Surely 2009 wasn’t the best of years for the venture-capital industry, with Wall Street trying to sort out credit turmoil, startups struggling, and the capital simply out of whack with bloated amounts of funds looking for a place to go. But there were some victories — some IPOs even, and 2010 is looking a lot better!
Redpoint Ventures partner Scott Raney points out that the IPO market is creeping back and that M&A activity is picking up substantially. That means more exits for startup companies, which will be good for pumping new blood back into the venture capital market in 2010. Raney also says that deal flow is increasing, M&A talks are increasing, and investors feel better about things. Will it hold up? Just follow the bouncing ball of the stock market, which leads the psychology here.
“The mojo is back, pricing is back, and things are full-steam ahead. It’s a little surprising, actually,” said Raney in an interview yesterday. “We’re bullish about a lot of things especially cloud computing and on-demand software.”
How about some more buzzwords? Here are some other areas Raney likes: “Internet Infrastructure, virtual goods, open mobile.”
I will be using some of Raney’s input, as well as input from lots more people, in some research I’m doing over the next few weeks. If you’d like to talk to me on the topic of venture capital, startups, and innovation, send me an email at email@example.com.