In my recent article published on E-commerce Times I discuss the new wave of Internet growth through companies utilizing large amounts of data.
Seed the Cloud
Where is the open road? Look for industries managing large volumes of data; two excellent examples are education and healthcare, where the users (students and patients) are really extensive data sets collected over a long period of time. One opportunity lies in becoming the tool to manage and aggregate the data, and another lies in the ability to synthesize and distill enormous data sets.
Turn on an episode of Seinfeld and return with me to the 1990s! This summer the National Venture Capital Association released results for the second quarter of this year, showing that US$7.5 billion was invested in 966 deals. This represented an increase of 19 percent in dollars and deals over the first quarter and continues a trend of larger deal sizes relative to 2010.
Who’s getting the money? The software industry received 35 percent more dollars than in the first quarter, with five of the top 10 deals (including the top two) classified as Internet-specific; that is, the business model is fundamentally dependent on the Internet.
Welcome to a blast from the past! The first generation of Internet-specific companies was founded nearly 20 years ago, with Netscape and Amazon leading the way. We all remember the Crash of the Sock Puppets when seemingly every business was migrated to the Internet. How can innovative Internet-specific companies be formed today?
Read more at E-commerce Times.
As a whole, it opens up some interesting thoughts on what companies are growing on the Internet.
What do you see for the future in these new trends?