US Tech Industry Can Thank Venture Capitalists

June 7th, 2012

While the US economy is still struggling to climb back up, it appears that the Information Technology sector is already had a head start thanks to the support of venture capitalists. A PricewaterhouseCoopers/Moneytree survey indicates that over $2 billion have been raised by venture capital firms that are anxious to jump start the rebirth of the American economy, in the final quarter of 2011, with more expected this year.

The IT industry is adding jobs at an amazing rate of 18 percent, with some 56,000 new jobs expected to be created from 2010 to 2020. The median salaries for IT professionals range from $46,000 for customer service reps to $100,600 for upper level Computer and Information Specialists. (Source: US Dept of Labor, Occupational Outlook Handbook)  That means some serious cash is needed for expansion of IT companies and the development of new software products.

What’s driving all this private investment? First is the demand for new and better technology. The world is in a “technological renaissance”, due to the growing Generation Y group who are graduating from top colleges and looking for opportunities to start their own companies. This entrepreneurial spirit is fueling the need for financial support from smart capital investors.

Some say that this investment activity is what has been keeping the US economy afloat during the long recession period. It’s likely that investors are looking towards the future, therefore they are willing to find less riskier projects in science and technology, which have been the backbone of growth in this nation for many years.

 

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