Venture Industry

U.S. venture funds raised $9.2 billion for 103 funds during the first three quarters of 2010 up from $8.9B in 2009, according to Dow Jones LP Source. Capital raised by early-stage funds fell 12% to $3.4 billion for 65 funds, while funding for later-stage funds, traditionally the smallest sector for venture fund-raising, rose 71% as five funds raised $1.3 billion.

The VC backed IPO and M&A market are beginning to bounce back after reaching 30 year lows in 2008 and 2009.

Internet, Gaming & Media

Internet traffic grew 62% in 2010, down from 74% growth in 2009 according to Telegeography. Eastern Europe and Southeast Asia demonstrated the fastest growth rates at close to 100% annually. However, traffic driven by mobile phones in some of these markets. In India, there are 72M mobile social networking users, twice as many as PC social networking users.

The Chinese online market will attain $5B in revenue in 2010 and 338M gamers up 28% y/y, according to a report by Zero2IPO.

US music concert ticket sales have tripled in in ten years from 1.5B to 4.6B fueled by rising ticket prices and decreasing supply.

Apple is selling 330,000 Apple TVs per month, a surprising success.

World of Warcraft reaches 12M paying subscribers driven by growth in China. WoW charges between 13-15 per month on a variety of plans.

Facebook launches Groups, a product intended to solve issues related to growth of personal social graphs. Groups enables group walls, chats, events and so on. The product enables anyone to be added to a group without their consent, a design decision intended to encourage feature use, a problem of the predecessor feature friends list .


Skype enables free WiFI calling for Android phones in the US, furthering the inevitable decline of minutes as a revenue stream for carriers.

Motorola proclaimed results of an enteprise survey indicating 34% of enterprise BlackBerry users would shift to Android devices. This data point likely informed the decision to build the Android Pro.

HP announced they would deliver WebOS enabled phones to the market in early 2011. 

Zynga hires David Ko as head of mobile.

HTC reported $360M in profit on $2.5B in revenue driven by Android sales. Second to Apple, HTC has the best mobile OEM margins.