Tuesday, May 10, 2011

Investors bet heavily on app developers, even as media investment bankers shy away from new media, in general

Here is a retweet, of sorts: TechCrunch is reporting that Sequoia Capital and IDG Ventures have invested $5 million a piece in app developer Sourcebits, a Banglarore-based start-up that has launched such apps as Skyfire and Night Stand.
The company will use the investment to set up engineering and sales centers in the U.S. (it maintains an office in Decatur, Georgia) and add to their design engineering teams in India and Europe.

I found this story a bit ironic in that I had just deleted a post I wrote concerning the lack of investment being made by the traditional media bankers. I deleted the post because I have already complained in the past about the lack of imagination, and frankly balls, being shown by the traditional NYC-based media bankers. The firms are currently sitting on investment portfolios of companies that are the poster childs for old media thinking.

But, as they say, you can't teach an old dog new tricks. But the question still must be answered: who will fund new digital publishing ventures, if anyone? Will they all be angel funded, or self-funded?

You would think that firms like VSS and Abry Partners would realize that their investments skew pretty, well, analog. Well, maybe not.