The Incredible Shrinking Information-Technology Industry

The information-technology industry, which produced some of the world’s largest tech companies and spawned Silicon Valley, continues to lose favor with venture capitalists.

Tech giants like Apple (AAPL), Cisco Systems (CSCO), Hewlett-Packard (HPQ), Intel (INTC), Oracle (ORCL) and Sun Microsystems all benefited in their early days from venture capital. By 2001, nearly 60 percent of venture capitalists’ money went into IT–everything from electronics and computing devices, to the software and semiconductors that power them.

But these days information technology is no longer the dominant force. Many venture firms lost patience with companies developing costly hardware like chips and networking equipment, and over time begin plowing an increasing share of money into less capital-intensive start-ups on the services side. At the same time, some IT investors began dabbling in the burgeoning clean technology field, while adding health care to their investment stable.

Read the rest of this post on the original site


Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »