Recent Trends in the Venture Capital Community

Recently, I attended a Venture Capitalwill see a mass exodus from the U.S. workforce.
Conference in which one of the speakersAll industries will be affected. One poll predicts that
predicted we would see technology change in the200,000 engineers will be left to replace jobs
next 15 years that would rival advancementsvacated by 2 million engineers retiring from the
similar to the past 100 years. That is a boldUS workforce. The current attention is placed on
prediction, but as new technologies continue tohealthcare, however, the retirement of the
emerge we are seeing some of the so calledworkforce will also impact logistics. Companies like
"Star Trek" and "Star Wars" technologies are nowFederal express may place a higher value on the
becoming reality.I suggest that if you areemployees who actually get the goods delivered
interested in capitalizing on these changes, justto the office, versus the pilots that fly the plane.
look to the trends in the Venture CapitalPart of the answer to the workforce is to bring
community. Current trends in the Venture Capitalbetter technologies through globalization to the
community outline three areas that will be thebusiness community.Web 2.0The way we see the
center of focus in the short term: Cleantech,web today will also change. Web 2.0, sometimes
Globalization, and Web 2.0.CleantechThe highcalled the "New Internet," is an umbrella concept
energy costs are creating interest for alternativethat suggests a Web-centric source for all data.
sources of energy. The government is currentlyWe are seeing more companies preparing for
putting in place several initiatives encouragingdisaster recovery solutions as dependence on
moving the American consumer away from ourtechnology increases. With "thin client computing",
dependency on oil. The subject of cleantech isusers access data from any computer via the
permeating the VC world. Cleantech offers broadWeb browser, be it news, weather, reference
applications in energy, agriculture, water,information or even application software, whereas
transportation and manufacturing, and promisesthe computer itself has nothing stored on it. Web
many advantages, such as more efficient uses of2.0 has contributed to the rapid growth in blogging,
raw materials, less waste, better performance,tagging, browsers, streaming media, and other
and potential to drive up the bottom line. Manycreative services for the mass internet user
also embrace cleantech for its social good beyond(search, movie reviews, event listings, etc.). We
the returns.The prospects for technologyexpect the internet use to continue to
advances in this areas are improving as moreimprove.We really do live is exciting times and will
resources and human capital is entering the field.participate in the creation of some remarkable
We expect more companies to show revenuetechnological advancements. Following the trends
generation in this area creating futherof the Venture Capital community can help us
interest.Recently, several cleantech funds havepredict where the changes are apt to occur
appeared or funds with cleantech as a focus.first.Alan L. Olsen, CPA, MBA (tax) is the Managing
Even though cleantech does not have anPartner at Greenstein Rogoff Olsen & Co., LLP, a
established track record like IT or life sciences,top Bay Area CPA firm. A specialist in income tax
we expect to see increased interest andplanning, he frequently lectures and writes articles
continued deal flow in this area over the next fiveon tax issues for professional organizations and
years. Early investors into this market shouldcommunity groups. Alan has over 21 years
expect ample rewards.GlobalizationThe bigexperience in advanced tax planning including
challenge in the U.S. labor market begins in theinternational tax, company reorganizations,
year 2008 when the first of the baby boomersmulti-state taxation, stock options, estates and
will reach age 62. Over the following 15 years, wetrusts, and representation before tax authorities.