7 surprising charts about technology and media today - Vox
Eric Barker stashed this in Diabolical Plans For World Domination
There is far less venture capital invested now than in 2000. That's a bad sign.
how is that a bad sign? it's the frenzy of newness followed by something resembling maturity.
I do not think we can compare like this. Software development is now orders of magnitude more capital efficient then it was in 2000. Factoring this in, I think the level of activity is higher than ever. The decrease in absolute numbers shows that the investors are cautious to invest to the areas where the capital is really needed - being R&D. VC capital became much more efficient at doing gradual improvements and filing niches, while R&D is concentrated in large companies doing self-financing - Google, Apple, IBM, etc.
Jason, it has led to more concentration of power.
Sergey, half as many companies are receiving funding now than in 2000. It's more winner take all.
Concentration of power is part of the equation yes, but I think the lower barrier to entry for startups these days vs. the late 90s plays a larger part. No longer is it necessary to spend giant piles of money on scaling PoCs to products.
Aaah, yes, I overlooked the first chart. I'm still optimistic about the room to grow.
Jason and Sergey, good points.