If the past is a trustworthy guide to the future, it looks like the best move will take place in the realm of software in 2014. According to the annual report released by MoneyTree, of the total venture capital invested last year, 37% went to software. This is the highest percentage that has gone to software recorded by MoneyTree ever since the company was formed in 1995. This translates to around 11 billion dollars of total investment. This is huge considering that it doesn’t just involve the 27% increase from 2012, it shows that the total software investments had reached this high ever since the year 2000.
This makes a lot of sense in the world of software, of course, as it fuels the technology around. Plus, software also has many different segments – mobile apps, desktop computer, and open source software for cloud computing platforms, among many others.
This is big news because it shows continued trust in the technology market. However, the fact that there’s a huge burst this past year and it compares to similar levels in 2000 thus making anyone paying attention a little bit scared. Everyone in the year 2000 started to worry – why? Because it was the so-called beginning and end of the First Dot Com wave. A lot of people claim that we are now in the Second Dot Com wave. Whereas the first wave brought us the likes of Ebay, Yahoo and AOL, the Second wave involved Facebook, Twitter, Google and others. It remains to be seen how long this race will last.
Still, the software investment figures from last year shows that the flow of money is not going to stop anytime soon. This has made critics worried because people can be fast and quite careless with their money and when an investment climax reaches that stage, you know what happens next –an inevitable crash will occur. Let’s just hope it doesn’t happen in 2014 although chances are quite good that it might.