Anyone who understands the phrase "the future is in the cloud" understands the California startup scene. While venture capital can and still is allotted to every industry imaginable, the tech and information sectors remain the most lucrative for both investors and startups.
One of the most prominent venture capital firms in California is Merus Capital, founded by Google's former executive of mergers and acquisitions. The company is now preparing to raise a new $100 million fund.
The Palo Alto-based company is currently working with its initial $40 million from the firm's founding in 2007 but plans to develop a second fund next year, according to Reuters.
Despite Merus' plans for greater investment, the total amount of money raised by U.S. VC firms dropped year-over-year for 2008 and 2009, according to a statement by Mark Heesen, president of the National Venture Capital Association, to Reuters. The number is expected to drop again for 2010.
However, some sectors have seen significant, high-profile investments, particularly in social media. As many analysts foresee huge initial public offerings from companies such as Groupon and Facebook over the next couple years, VC spending is expected to improve, providing a glimpse of hope for many ailing entrepreneurs seeking to incorporate in California.
Tags : ca, incorporation news, small business management
Posted: Dec 27th, 2010