Explaining Southern California's economy

Fred Wilson says we should all learn to program. Maybe not...

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People work at computers in TechHub, an office space for technology start-up entrepreneurs in London, England.

I've mentioned Fred Wilson, a venture capitalist and principal at Union Square Ventures, before. Not because he's a noted VC with some big strikes outs, as well as some big wins, in his background, but because he blogs every day and generally blogs very well.

Mind you, he often blogs about companies in his portfolio, including most recently, Codeacademy, an "online resource for people who want to learn to code," according to Wilson. In reading his blog, A VC, I find myself disagreeing with some of Wilson's positions, but he always seems awfully sharp on tech, tech culture, and the world of venture investing generally. He's obsessed with clarity and isn't afraid to share the nuts and bolts of his profession. He doesn't get gobs of traffic and many, many comments (using Disqus, an excellent system we have here at KPCC and that USV has invested in) for nothing.

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The state of venture capital and tech investment

TechCrunch Disrupt SF 2011 - Day 3

Araya Diaz/Getty Images for TechCrunch

SAN FRANCISCO, CA - SEPTEMBER 14: (L-R) TechCrunch Founder and Co-Editor Michael Arrington,500 Startups Venture Capitalist & Founding General Partner David Mclure, Tasty Labs Co-Founder and CEO Aydin Senkut, Freestyle Capital Founding Partner Josh Felser, SoftTech VC Managing Partner Jeff Clavier, and SV Angel angel investor Ron Conway speak onstage at Day 3 of TechCrunch Disrupt SF 2011 held at the San Francisco Design Center Concourse on September 14, 2011 in San Francisco, California. (Photo by Araya Diaz/Getty Images for TechCrunch)

If you aren't reading Fred Wilson, you should. He's a venture capitalist who runs Union Square Ventures in New York and regularly writes about being a VC at his aptly named blog, AVC. Many people who are pondering the woeful state of the U.S. economy are looking to tech as something that may lead us out of the woods. Problem is, tech costs money. And tech is extremely competitive. And there's been some discussion of late that VCs are having trouble raising money to fund new companies.

Wilson breaks it down. Here's what I think is his most interesting point:

5) The internet investing market is transitioning. Social was the driving force for the past three or four years. In the wake of Facebook and Twitter, how could it not be? Mobile has also been a hot theme. Both sectors have consolidated a few winners and a number of additional interesting emerging companies. But how many social platforms of scale will there be? Five, ten, twenty? And mobile is hard because distribution continues to be limited to the app store model where you get on the leaderboard and win or you don't and you don't. Investors are moving into new areas like cloud, peer to peer marketplaces, and trying to take what worked in consumer into the enterprise. There is no lack of interest in internet investing, but investors are having to learn new markets and new sectors. And that kind of transition takes the heat out of an overheated market.

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