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Trends in Venture Capital

By Sanjay Subhedar, Managing Director, Storm Ventures
Wednesday, April 8, 2015
By Sanjay Subhedar, Managing Director, Storm Ventures
The California based 1997 founded Storm Ventures is nichely focused on early-stage enterprise investments, especially in the verticals of mobile, SaaS and cloud infrastructure.

It has been almost two decades since Storm got started. We were and still are focused on Early Stage investing in innovation in Information Technology for the Enterprise. While we invested in core technologies like semiconductors and optical components in the early 2001's; currently we are only investing in software solutions for the enterprise in three markets; SaaS, Private Clouds and Mobile Infrastructure.

Over the last 40 some years, the VC industry invested in core technologies that delivered significant increases in compute, storage and bandwidth. The innovations funded by venture capital delivered not only tremendous increases in raw capacity but also lowered costs significantly. At the same time, Moore's law delivered all of this in smaller and smaller form factors that combined with advances in wireless and cellular enabled a revolution in mobile solutions, with the phone and tablet.

Cheap, small and powerful compute, storage and ubiquitous connectivity are enabling new ways of doing business not possible heretofore. Having laid the foundation for the internet with these new digital technologies, we are now seeing innovation in business models (rather than in technology) that is disrupting the traditional way of doing things. As a result, we saw Netflix eliminate the need for Blockbuster and iTunes drive Tower records into bankruptcy. We are seeing companies like Amazon in the U.S. and Flipkart and Big Basket disrupt conventional bricks and mortar retailers.

Uber and Lyft are disrupting the Limo and Taxicab industry. Rent the Runways is seeking to make Designer Clothes more affordable. The ability to see the products on your phone/tablet/computer and visualize how it will look on you and/or get feedback from customers who have bought the product or service before, are all enabler for e-Commerce.


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