Big data startups a magnet for venture capital: study

Big data startups are getting big money. According to CB Insights, which tracks venture capital investment in the U.S., big data startups have attracted nearly US$5 billion in investment over the last five years and 2012 was the biggest year yet, with 19.5 per cent year over year growth.

Roger Ehrenberg of venture capital firm IA Ventures has raised US$155 million to invest in early-stage companies focused on big data, and in a recent interview with Yahoo Finance he discussed big data and what he’s looking for in potential big data investment prospects.

Here’s Ehrenberg’s advice to entrepreneurs in this space looking to attract investors:

“As early as you can, engage with real customers, even if your product totally sucks. What I see, especially in this space, it tends to draw brainy people but [it’s] not necessarily the most people-oriented, so entrepreneurs develop something cool that not that many people want. But had they engaged with these uncomfortable discussions with customers early on and were open to sharing what they had built early on, and then incorporated their feedback into the product roadmap. It’s where a tech founder also has to be a product manager. Customer engagement as early as possible is the single biggest piece of advice. And have a co-founder. It’s unbelievably difficult to build a company, even in early days, on your own, where you don’t have a foil to get you outside of your head.”

Related Stories

He also has a good answer to “what does big data mean,” agreeing that it has become a bit of a “stupid” term that has been rather diluted by the IT hype machine. He does have a good definition for it though, and while it’s not an entirely new concept – remember data analytics? – it’s undeniable that the space is hot and the technology has advanced to the point where it can drive business decisions in a much more real way.

Source: ‘Big Data’ Generates Big Returns: Q&A With VC Roger Ehrenberg

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Jeff Jedras
Jeff Jedras
Jeff Jedras is a technology journalist with IT World Canada and a member of the IT Business team. He began his career in technology journalism in the late 1990s, covering the Ottawa technology sector for Silicon Valley North and the Ottawa Business Journal. He later covered the technology scene in Vancouver before joining IT World Canada in Toronto in 2005, covering enterprise IT for ComputerWorld Canada and the channel for Computer Dealer News. His writing has also appeared in the Vancouver Sun & the Ottawa Citizen.

Featured Story

How the CTO can Maintain Cloud Momentum Across the Enterprise

Embracing cloud is easy for some individuals. But embedding widespread cloud adoption at the enterprise level is...

Related Tech News

Get ITBusiness Delivered

Our experienced team of journalists brings you engaging content targeted to IT professionals and line-of-business executives delivered directly to your inbox.

Featured Tech Jobs