The Surge in Tech VC Funding

VC investment has been skyrocketing lately, but why? Let’s discuss some of the trends that are driving bigger investments in today’s startups.

SHOW: 536
CLOUD NEWS OF THE WEEK - http://bit.ly/cloudcast-cnotw
CHECK OUT OUR NEW PODCAST - "CLOUDCAST BASICS"

SHOW SPONSORS:

CBT Nuggets: Expert IT Training for individuals and teams
Sign up for a CBT Nuggets Free Learner account
Datadog Security Solution : Modern Monitoring and Analytics
Get started monitoring your container environment with a free 14 day Datadog trial. Listeners of The Cloudcast will also receive a free Datadog T-shirt.

SHOW NOTES:

WHEN AN A-ROUND IS THE NEW C-ROUND

Why is so much money being invested by VCs over the last 12 months, and what trends are pushing them to make bigger bets?

LET’S FOLLOW THE MONEY AND THE NUMBERS

Global interest rates are very low, since 2017, accelerated by the COVID pandemic
Tons of government money was pumped into the global economy
Tech is consolidating around 3-5 major cloud providers, with massive tech amounts of capital and engineering.
There is really no longer a middle ground in the tech industry. There are startups and there are the big clouds.
Cloud providers make some acquisitions, but they need big numbers to move the needle.
Today’s technology challenges are large in scale - AI/ML, Self-Driving Vehicles, Genetic Testing (Vaccines, Pharmaceuticals) 5G, Energy Discovery and Optimization, Everything Delivery, etc.
The stock markets are continuing to reward tech profits, and markets are overly weighted in tech.
Cloud and SaaS has changed the sales and marketing model, as well as the CAPEX/OPEX model, so new companies can be modeled more consistently

FEEDBACK?

FEEDBACK?

More from The Cloudcast