A little over a year ago,
venture capitalist Jim Goetz said he was flooredthat so few entrepreneurs focus on products for businesses, instead of consumers, given how successful enterprise startups have been.
In 2013, VCs started seriously putting their money where Goetz’s mouth is.
Of the 50 largest venture deals this year through September, 70% of them went to startups building tech for businesses, researcher CB Insights says.
As of September, VC funds for enterprise startups totaled $US2.2 billion versus $US1.28 billion for consumer, with over $US450 million going to just two consumer companies, Uber and Pinterest. (We’ll point out that the tally excludes the whopping $US225 million Pinterest just raised in October.)
This chart shows how VC’s interest has swung toward enterprise over the past couple of years.