Riding the momentum in Internet and Venture Capital markets

This week I had the opportunity to read 2 interesting articles:

This is a 10 points summary that I would like to share with you:

  • The cost to start a company was $500k in 2005, now is $5K
  • Many companies in the Silicon Valley shares similar secrets: Amazon Web Services and YCombinator, the seed founding machine leaded by Paul “Lean” Graham
  • The Internet startups are increasing while active VCs are decreasing. Only 7 of the active VCs are receiving most of the financing (6.3B$/8.1B$ in H1 2011 in USA)
  • Some of the VCs that are adapting their strategy to this changes are:  seed (YCombinator, 500 Startups, Techstars) early stage (K9, Harrison Metal,  OATV, Freestyle, Rincon Venture Partners, Thrive,  Floodgate,  IA), other stages (First Round Capital,  True Ventures)
  • The next big thing: Internet TV. The estimated marketing advertising revenue in 2011E is $2.1B
  • The penetration of mobile internet in USA achieved more than 50% in 5 years from 2005 to 2010. Internet needed 10 years to achieve the same target. In Q2:11 in USA there are 179MM 3G users with a penetration of  56%, in Spain the users are 30MM with a 53% penetration
  • The global market of mobile phones is 5.6B. At this moment the smartphone users are 835MM. There is a great growth opportunity
  • The mobile apps+ mobile advertisement market has grown with a CAGR of 153% from 2008, achieving $12B in 2011E
  • Mobile Internet is accelerating ecommerce and the global Internet Ad revenue estimated this year is $73B. Google during Q3:11 achieved $9B, and sold 16B paid clicks
  • The trend for 2012 is mobile internet + social ecommerce. This technologies are driven by 4 big companies: Google, Apple, Facebook, and Amazon

There is a new swell coming. Powered by mobile, internet, social platforms and ecommerce. Charlene Li, one of the most influential people in the Silicon Valley, called this swell the groundswell. Anybody today can start an online business without the need of big investments. You just need an idea and disciplined execution.  Are you going to take a ride?

Photo Credit: Tim-McKenna @ http://www.timmckennaphoto.com
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