Investments in software startups are on their way to being as big as the rest of the venture capital industry combined, according to charts published by CB Insights.The research firm compared investment since 2002 in software startups — including web and mobile companies — to investments in everything else: hardware, green tech, health care, etc.
The results are pretty striking for such a short time frame.
In terms of deal volume, software has already almost caught up with the “everything else” bucket: 45.2% of VC deals CB Insights tracks have been in software so far this year. Part of that is a result of the smaller deal size in software startups, but the value numbers are catching up as well: software investments made up less than a quarter of VC money in 2002; that number is just over a third this year.
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