Last week, I attended an informal gathering of venture capitalists, start-up chiefs and assorted press. Over crackers and a few cocktails, we talked about where the industry is headed.

Needless to say, the VCs I spoke with were cautiously optimistic. Though they had clearly been burned by the dot-com era, they were trying to assimilate what they learned and move forward. The biggest lesson was don't put all your eggs in one basket.

During the boom era, VCs were laying claim to certain areas of investment such as mobility, customer relationship management, or other such hyped words. They would fund several start-ups in that area, hoping to create the ultimate incubator. However, they learned quickly that when the industry around that topic tanked, their investments went with it.

Now, you hear of VCs spreading their money around - funding a few edgy companies and a few no-brainers. The biggest thing you see with the VCs is how involved they are now. Before, they were funding too many companies to keep track of, instead relying on a few wet-behind-the-ears inventors to lead the business plan. No more. Instead, they seem to be hands-on the whole way through the process. They also seem to be able to speak fluently on the companies they are backing, showing equal enthusiasm and knowledge for each. Good to see.

As for the entrepreneurs, they are back in the basement, toiling away at their inventions. No more plush offices just for having an idea. Instead, they are having to earn their way in the door. And it seems to have made them more focused. They are talking products and features rather than stock options, benefits and Porsches. They have that passionate gleam in their eyes that only an era of humility can bring. They also seem to be working on real offerings rather than spouting off about never-to-be-seen vaporware.

All in all, the feeling was positive... cautious but positive. It gave me definite hope that the right people are in the driver's seat to usher in this new era of innovation.

Venture capital funds lead to wireless LAN gold rush
Network World, 11/18/02

VC start-up funding down again
Network World, 11/11/02

Industry slump doesn't preclude advances
Network World, 10/21/02

Current Article

Motivating You - Network World digs deep into your work, career and free time

Past Articles

Your WAN: What's your next move? What you'll learn at Network World's WAN Technology Tour

Wireless: How far we have come - What to expect at Network World's WLAN Technology Tour

What's new about the New Data Center: How the concept of the New Data Center forces different thinking

2004: What do you need to know? - Your chance to help shape the Network World Technology Tour

What identity management can do for you: The importance of identity management

Mailbag: Who's minding the voice calls? A trick question

Mix 'n match storage: Not all data requires the same storage approach

Key to VoIP success? Training VoIP smarts

Who is responsible for securing voice calls over data lines? - Network and data managers must work together to ensure network integrity

Is your network view cloudy? - Storage: Shoring up your enterprise strategy

Six options for securing wireless LANs: Lessons from Network World's Security Technology Tour

Security and Storage: The perfect pair

Get savvy about SAML: Single sign-on with SAML

Standardizing IT skill sets: Your chance to help shape the standards for IT skill sets (05/14/03)

The art of consolidation: Consolidation is not an admission of defeat (05/07/03)

Reinforcing security: Network World Technology Tour focuses on corporate security (04/30/03)

The Day Two demands of VoIP: Taking voice-over-IP to the next level (04/23/03)

Instant messaging getting its due?: Instant messaging finds a home in the enterprise (04/16/03)

A powerhouse of CEOs in one room : Of Cisco, Linksys and Vortex 2003 (04/09/03)

How to survey your site for WLAN : Getting ready for WLAN in your enterprise (04/02/03)

Fooling spamers : Anti-spam tips from the Center for Democracy & Technology (03/26/03)

IEEE works on wireless access for riders on high-speed vehicles : Introducing IEEE's 802.20 spec (03/19/03)

Where will you spend your security dollars : What's the most important to you in security? (03/12/03)

What are your WLAN concerns?: Join our Wireless LANs Technology Tour (03/05/03)

Voice and video on the security scene: Identification via voice and skin recognition (02/26/03)

Is now the time for service level management?: What came out of the Service Level Management Tour? (02/19/03)

Setting limits: When to say "No" to end-users (02/11/03)

Keeping up with the patches: Resources to help guard against security attacks (02/05/03)

State of the state: Venture capitalists are cautiously optimistic about the future (01/29/03)

Demo: Who says innovation is dead? (01/22/03)

Inside Wireless LANs: Building and managing a well-integrated WLAN network (01/15/03)

Inside service-level management: A look at what Network World’s Technology Tour on SLM will offer (01/07/03)

Shaking the tree: The problems with voting systems (12/17/02)

Videoconferencing: Bring it on (12/11/02)

It’s not just about networks anymore: Extending enterprise applications (12/04/02)

Mailbag 2: Dial-up is (not) history (11/27/02)

Mailbag: Dial-up is dead (11/20/02)

Voting: A lesson in technology (11/13/02)

Dial-up is history: Hurray for wireless LANs (11/06/02)

Dial-up is history (10/30/02)

Inside the LAN (10/23/02)

Your WAN concerns (10/16/02)

Mobile interaction (10/09/02)

The Wireless World (10/02/02)

The State of IT Spending (09/25/02)

Let's talk VoIP (09/18/02)

Distance learning not all about distance (09/11/02)

What's the state of your WAN? (09/04/02)

Paperless society falls by the wayside (08/28/02)

Educating tomorrow's IT managers (08/21/02)

Educating tomorrow's IT managers (08/14/02)

Your work concerns (08/07/02)

All about You (07/10/02)

A tale of woe from the front line (07/10/02)

Your commitment to yourself (07/03/02)

Mailbag: Who should foot the training bill? (06/19/02)

Security: A tough nut to crack (06/12/02)

Training is up to you (06/05/02)

How valuable is training?(05/30/02)

Data prioritization: Not as easy as you think (05/22/02)

Keeping up with security (05/15/02)

Storage: The crux of business continuity (05/09/02)

IT training on the rise for 2003, NetSmart, 05/03/02

The allure of 3G, NetSmart, 04/24/02

RFPs: Get your money's worth, NetSmart, 04/10/02

Cisco exams tests real-world skills, NetSmart, 04/03/02

Wireless: The key to enterprise application integration?, NetSmart, 03/27/02

Are you ready for voice over IP?, NetSmart, 03/20/02

The value of communication, NetSmart, 03/13/02

Your thoughts on training and technology, NetSmart, 03/06/02

More vacation time or more certifications?, NetSmart, 02/27/02

Live demos: Could you do them?, NetSmart, 02/20/02

Take our learning "test" to help us help you, NetSmart, 02/13/02

Screaming for streaming media, NetSmart, 02/06/02

Mailbag: Ways to learn on a shoestring, NetSmart, 01/30/02

HIPAA's ripple effect, NetSmart, 01/23/02

Ways to learn on a shoestring, NetSmart, 01/16/02

Spring 2002 tour schedule, NetSmart, 01/09/02

Several ideas for finding internship opportunities, NetSmart, 12/21/01

How to get the best out of trade shows, NetSmart, 12/19/01

Internships make a comeback, NetSmart, 12/12/01

The longevity of skills, NetSmart, 12/05/01

The State of the LAN/MAN tour is underway, NetSmart, 11/28/01

State of the LAN/MAN seminars and resources, NetSmart, 11/16/01

Got Certification?, NetSmart, 11/14/01

Your thoughts on certifications, NetSmart, 11/07/01

Resources to help you decide if XP is right for you, NetSmart, 10/31/01

The benefits of short-term certifications, NetSmart, 10/24/01

A list of storage resources on the web, NetSmart, 10/15/01

Reviewing IT Budgets, NetSmart, 10/09/01

Local-based training options, NetSmart, 10/02/01

Disaster recovery, Part 2, NetSmart, 09/27/01

Help for disaster recovery planning, NetSmart, 09/20/01

The power of public speaking, NetSmart, 09/17/01

Tips for getting to know your colleagues, NetSmart, 08/21/01

Places to talk about tech online, NetSmart, 08/14/01

The fall lineup, NetSmart, 08/07/01

Salary survey shows certification boosts your pay, NetSmart, 07/31/01

Ease your concerns with training, NetSmart, 07/24/01

Summer vacation: A great training opportunity?, NetSmart, 07/19/01

Train the trainer, NetSmart, 07/10/01

The manager's role in training, NetSmart, 07/02/01

Project management is your best friend, NetSmart, 06/27/01

Tracking one network manager's journey to CCIE, NetSmart, 06/21/01

Practice makes perfect, NetSmart, 06/14/01

Training in two's, NetSmart, 06/07/01

Training isn't just about education, NetSmart, 05/30/01

Boot camps boost you network skills, NetSmart, 05/23/01

The many benefits of on-Site training, NetSmart, 05/16/01

Back to basics, NetSmart, 05/02/01