ANN ARBOR The man named by Forbes magazine as the nations top Venture Capitalist says the next big technology on the horizon is wireless mobility devices.
Promod Haque, Managing Partner, also said the 2004 landscape for VC investments looks a lot like it did 10 years ago two thirds lower than today.
Haque, in the No. 1 spot on this year’s Forbes Midas List of 50 top venture investors, said capital efficiency is the new mantra chanted by equity finance folks. He shared his views at the University of Michigan’s Growth Capital Symposium.
Things are different, he said. Its not business as usual. Capital efficiency is extremely important now.
So important that he predicts the industry will see shrinkage in investments from the $15 billion or so now put up by private equity financiers to perhaps $6 billion in 2004. The key for investors will be brand recognition. Me too companies that cant break from the pack will be out of luck, he said.
Now were very disciplined, he said. Unless theres a major differentiation, the venture capitalists are shying away. We dont invest in the fourth player in the market.
In this more disciplined investment climate, does it make sense to invest in technology, Hoque asked? Yes. But pick the wave technologies that are beginning to dominate this decade. Those include wireless mobility, where wireless technology will be used by business, where wireless technology changes the way everyone works and the business relationships.
Six hundred million hand sets are now sold each year in the world, Hoque said. Telephone hand sets are becoming the largest computing platform in the world. They are used for video, photos, messages, to interact. PCs will be replaced by cell phones.
Hoque said he also sees a tremendous convergence in telephones, entertainment and TVs. He predicts by decades end, consumers wont buy TVs anymore. Instead, theyll rent them bundled with their favorite software and entertainment packages.
Mitechnews.Com will be presenting more views this week from Hoque and the other speakers who participated in the UMs Growth Capital Symposium. Be sure to click on Mitechnews.Com for the latest information for entrepreneurs and on the states private equity finance movers and shakers.
