IT vendors to kick start US tech start-ups
Leading IT vendors are to pump £2.3bn into US-based technology start-ups over the next two years.
A group of 17 IT vendors, including Intel, Cisco, Dell, EMC, HP and Microsoft, have joined forces with over twenty venture capitalist firms to form the Invest in America Alliance. The aim of the group is to help US tech start-ups grow and provide opportunities for IT graduates struggling to find work in a difficult jobs market.
Tech start-ups in Europe can only look on in envy and hope for a similar injection of cash on the same scale in the future.
“With investor’s capital sources – fundraising and liquidity – still tight in Europe, entrepreneurs will continue to face intense competition for capital in 2010,” stated Arno Castanet, research manager at Dow Jones VentureSource.
Figures published by VentureSource earlier this month [Feb 2010] show that the IT industry in Europe raised (£712m) of investment in 2009, 45 per cent down on the (£1.3bn) garnered in 2008.
Investment in traditionally more innovative and agile software company start-ups attracted the largest proportion of European VC spending £305m, but still fell 50 per cent year on year, whilst the UK is still the most invested in country in Europe.