| Recently, I attended a Venture Capital Conference in | | | | should expect ample rewards. |
| which one of the speakers predicted we would see | | | | Globalization |
| technology change in the next 15 years that would | | | | The big challenge in the U.S. labor market begins in |
| rival advancements similar to the past 100 years. | | | | the year 2008 when the first of the baby boomers |
| That is a bold prediction, but as new technologies | | | | will reach age 62. Over the following 15 years, we will |
| continue to emerge we are seeing some of the so | | | | see a mass exodus from the U.S. workforce. All |
| called Star Trek and Star Wars | | | | industries will be affected. One poll predicts that |
| technologies are now becoming reality. | | | | 200,000 engineers will be left to replace jobs vacated |
| I suggest that if you are interested in capitalizing on | | | | by 2 million engineers retiring from the US workforce. |
| these changes, just look to the trends in the Venture | | | | The current attention is placed on healthcare, |
| Capital community. Current trends in the Venture | | | | however, the retirement of the workforce will also |
| Capital community outline three areas that will be the | | | | impact logistics. Companies like Federal express may |
| center of focus in the short term: Cleantech, | | | | place a higher value on the employees who actually |
| Globalization, and Web 2.0. | | | | get the goods delivered to the office, versus the |
| Cleantech | | | | pilots that fly the plane. Part of the answer to the |
| The high energy costs are creating interest for | | | | workforce is to bring better technologies through |
| alternative sources of energy. The government is | | | | globalization to the business community. |
| currently putting in place several initiatives | | | | Web 2.0 |
| encouraging moving the American consumer away | | | | The way we see the web today will also change. |
| from our dependency on oil. The subject of | | | | Web 2.0, sometimes called the New Internet, |
| cleantech is permeating the VC world. Cleantech | | | | is an umbrella concept that suggests a Web-centric |
| offers broad applications in energy, agriculture, water, | | | | source for all data. We are seeing more companies |
| transportation and manufacturing, and promises many | | | | preparing for disaster recovery solutions as |
| advantages, such as more efficient uses of raw | | | | dependence on technology increases. With thin |
| materials, less waste, better performance, and | | | | client computing, users access data from any |
| potential to drive up the bottom line. Many also | | | | computer via the Web browser, be it news, |
| embrace cleantech for its social good beyond the | | | | weather, reference information or even application |
| returns. | | | | software, whereas the computer itself has nothing |
| The prospects for technology advances in this areas | | | | stored on it. Web 2.0 has contributed to the rapid |
| are improving as more resources and human capital is | | | | growth in blogging, tagging, browsers, streaming |
| entering the field. We expect more companies to | | | | media, and other creative services for the mass |
| show revenue generation in this area creating futher | | | | internet user (search, movie reviews, event listings, |
| interest. | | | | etc.). We expect the internet use to continue to |
| Recently, several cleantech funds have appeared or | | | | improve. |
| funds with cleantech as a focus. Even though | | | | We really do live is exciting times and will participate |
| cleantech does not have an established track record | | | | in the creation of some remarkable technological |
| like IT or life sciences, we expect to see increased | | | | advancements. Following the trends of the Venture |
| interest and continued deal flow in this area over the | | | | Capital community can help us predict where the |
| next five years. Early investors into this market | | | | changes are apt to occur first. |