Software Applications: Exciting developments are taking shape

We are witnessing dramatic changes (Off-site link) in software and the Internet. Open-source (Off-site link) is having a significant effect on the market for enterprise applications requiring hybrid business models that incorporate services for revenue generation. Technologies including XML (Off-site link) and Ajax (Off-site link) are transforming the Web from a communications medium into a full-scale platform for software applications. Web services (Off-site link) and Open API’s (Off-site link) have created new possibilities for creative extensions (Off-site link) to existing applications. Folksonomies (Off-site link) and aggregated content are increasing the importance of words for brand building. And Wiki’s (Off-site link) have created a new open model for collaborative content creation.

Most importantly, blogging (Off-site link), social networks and applications built on LAMP-stack (Off-site link) architecture are enabling entrepreneurs to locate, form and lead virtual teams to bootstrap the creation of capital efficient software enterprises.

We not only recognize these changes, we have incorporated them into our model for Venture Capital 2.0 (Off-site link). These developments and other factors (Off-site link) have lead some to believe that a profound structural impact (Off-site link) is transforming venture capital. Regardless, it is clear to us, these developments require changes to existing models (Off-site link) for early-stage investing.

Posted by Clarence Wooten on May 28, 2005
Comments (0) | Del.icio.us (tag this post) (Off-site link)

Comments

Post a comment




Remember Me?


Sidebar