Cloud Computing adoption in the enterprise was last introduced as possible, so long as strategies are considered first. Venture capital funding is an extension of corporate strategy. The difference is that venture capital funds accelerate the process. They are, in effect, supporting the cloud wave. How?
Venture funds recently supported start-ups that use the cloud at the earliest phases of application development. Angel investor Dave McClure said that nearly 75% of tech startups fail to survive past three years. Start-ups failed partly because of high initial costs. The shift toward cloud computing eliminated the cost of expensive hardware, lower the cost of a start-up by 100-fold.
From the funding side, cloud computing led to companies like Punchd and TeachStreet. These companies were subsequently acquired by Google and Amazon, respectively. The companies received funding from anywhere between $10,000 and $250,000 from McClure’s angel fund.
McClure planned to start another fund that will invest in 500 start-ups. Do you have a start-up? Do you expect the majority of future investments to be cloud-based enterprises?