Tech Incubators Said to Be on Decline:
IRVINE, Calif. (Reuters) - Fewer technology firm incubators should be cropping up in coming years as the fervor over dot-coms fades, venture capitalists specializing in technology stocks said at a business writers conference this weekend.
Incubators have been a part of the landscape, but are not the wave of the future, said VentureLab LLC Principal Charles Martin. There is still room for incubators but the easy money part of it is gone.
Venture capitalists noted that incubators, a popular venue for cultivating young technology firms, have fallen out of favor with investors. Their decline has paralleled the drop in exuberance over technology stocks since the Nasdaq dropped in value in April.
April this year was a wake up call, Martin said. One of the things about the industry is that sobriety sets in quickly.
Jonathan Funk, managing director of Allegis Capital/Media Technology Ventures, agreed, adding that financing was still available for start-up technology firms but that venture capitalists were aiming at sectors considered to have more potential for profits, such as wireless and biotechnology. |
