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VCs Tag Hot Technologies

Question: What are the prime targets for venture capital investment in 2005?

Answer: Startups that help facilitate disaster recovery, ILM, or compliance, or support Remote Direct Memory Access (RDMA) over IP -- according to a couple of VCs looking to spread money around.

Storage startups pulled in more than half a billion dollars this year from VCs, and there doesnt seem to be any slowdown in sight for 2005 (see Storage Startups Top $500M). In the last month, one VC fund looking for storage startups got new money, and two others welcomed a prominent new player.

Updata Partners (NYSE: ARW) this week announced it pulled commitments of $154.5 million for a venture capital fund that will likely be invested in $2 million to $15 million allotments (see Updata Gets Partner). Storage is one of the fund’s main focuses, along with security and systems management.

Last month, former NuSpeed Internet Systems CEO Mark Cree joined two VC firms -- El Dorado Ventures

and Vesbridge Partners LLC
-– as Entrepreneur-in-Residence (see Ex-NuSpeed CEO Joins VC World). Cree will focus investment opportunities in the enterprise networking, Web services, and security markets, but will keep his eye on the storage space.

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