Venture Capital 2010: Hot (and cold) sectors to watch
Normal consolidation occurred in our industry this year. A number of prominent firms went quiet or declined to raise new funds. As the capital markets thaw a bit more in the coming 
months, we expect the strongest of these firms to reemerge, though probably in scaled-down fashions. Others will manage their current investments to fruition and new funds and models will be born.
2010 should be the ultimate buyers’ market for investors with cash to spend because entrepreneurs who tightened their belts last year cannot do so indefinitely. In early 2010, many will begin looking for funding to grow and continue operations. We expect these companies to come out lean, mean and with ramping revenue.
The improving exit markets will increase confidence and appetite for risk, which is a necessary ingredient for startup prosperity. Also, the recession has encouraged a 
substantial amount of innovation from otherwise unemployed entrepreneurs. VCs with good reputations and cash on hand will have plenty of prime cuts to choose from in 2010. Read more:
