Sunday, December 17, 2006
So What Exactly Are Venture Capitalists Looking At?
SAN FRANCISCO, Dec. 16 — Wanted: investment adviser, the younger the better.
In a nod to the wisdom of youth, many wealthy, highly connected and well-educated technology investors are taking counsel and investment tips from their children, summer interns and twentysomething receptionists.
These venture capital investors say there is good reason to ask young people to help them assess new technology: as the investors themselves are aging, the technology — including social networking Web sites and mobile gadgets — is designed for, used by and sometimes built by people half their age.
“Children are a secret weapon in my arsenal for making investment decisions,” said Heidi Roizen, a managing director at Mobius Venture Capital, a Silicon Valley firm.
Source, New York Times
This is pretty interesting. The youth market is calling the shots on what works online. This is like in the movie BIG where Tom Hanks gets to play with the toys. Based on what the kids like companies can begin to create products that will get used. There is no more guessing when it comes to creativity.
Just how big is the youth market? The results may surprise you.
According to EPM communications the youth market will spend roughly 22 billion per year onilne. Kids age 8-21 currently spend about $22 billion per year online--about 16% of their total spending--according to the Harris Interactive YouthPulse Survey. Teens age 13-17 make between five and six online purchases a year, while those age 18-21 make 15 online purchases annually.
This can affect everything from the kinds of foods kids eat to the entertainment they choose. There is also a lot of room here for licensing characters to promote products.
Article written by Ted Cantu, freelance correspondent for FASCUBE, The Fashion Culture Beauty Network. Cantu handles online marketing, copywriting, graphics, SEO - SEM, Blogging, Podcasting and can be found on his home site of www.911copywriters.com. Cantu is located in Walled Lake, Michigan.