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The Industry has to Improve on Focus and Discipline
Ravi Viswanathan
General Partner-NEA
Thursday, May 1, 2014
A leading venture capital firm with over $13 billion in committed capital, that invests in information technology and healthcare companies at all stages in a company’s lifecycle, from seed stage through IPO. NEA’s long track record of successful investing includes more than 175 portfolio company IPOs and more than 300 acquisitions.

The trends impacting the healthcare and technology sectors, which are our prime areas of focus, remain centered around mobility, cloud and e-commerce. Large-scale investments are materializing in the world of mobiles during the last few years. From payments, marketing to content, the e-commerce sector is undergoing an interesting phase in terms of progress. Coming to cloud, though it is in its nascent stages, several apps are being upgraded into the technology, thereby resulting in enhanced usability and functionality.

Targeting the Potential Areas for Investment

In recognition of the trends, we have made huge investments in cloud, portfolio education, healthcare, and infrastructure technology sectors. The Internet of Things or (IoT) is another area with huge amounts of potential. NEA’s established investment strategy covers all stages of a company's development, from seeding innovations in promising markets to backing early-stage companies in high-growth verticals to enhancing the growth of market leaders. In other words, NEA would prove to be the best venture capital firm for companies, during any stage of the process and in any location.

The recent innovations are also noteworthy in terms of investment. A few years ago, such innovations of high-level were not present, and we are currently looking for stand-out innovations.

Going further into innovation, especially from start-ups, it could be learned that the focus is always on the customer-product experience, especially differentiated customer experience and products that are sustainable.

There are Challenges to Overcome

Currently, the market is devoid of focus and discipline. This is a market where some sectors remain over heated, overly funded or overcrowded. And, it is not difficult to organize funds for these companies. However, though it could be possible to secure huge amounts of money, with the capital turning cheaper, the chances are high for players to end up losing focus and discipline, which is a biggest challenge in the sector. It is a highly active market there, and it is vital to stay balanced and focused, while being attentive towards execution, which is another challenge. As compared to earlier days, the process of commencing a firm has been simplified, which led to significant increase in the number of new firms being developed. Yet another issue that companies have to tackle is finding the best resources. In the highly competitive market, it is vital to hire the best, and retain them. In short, an organization aiming market success should focus on the products, customers and user experience.
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