Tomorrow, we will be releasing our Q3 Follow the Money report. Follow the Money is Topline Strategy’s quarterly analysis of venture capital investment in information technology. As opposed to the traditional venture trend analysis that categorizes companies based on technology (software, computers, etc.), our analysis is organized around the customers companies are looking to serve (businesses, consumers, OEMs, carriers), business models (Open Source, SaaS, advertising, transactions) and go to market strategies. By understanding investments on these new dimensions, we are able to quantify collective decisions, identify investment patterns, and discover insights in ways never before possible.
The major finding of this quarter’s report is the continued growth in the funding of consumer-oriented businesses and the strong leading indicators that point to the segment continuing to gather steam in the coming quarters – the surge in first round investments, the durability of the market even as investment in social networking cools, and the continued growth in Internet advertising.
The strength of the consumer segment comes as the signs point to a softening in the investment climate for business technology products, the largest segment of IT investing.
You can download the entire report at http://followthemoney.toplinestrategy.com.