One of the best ways to address the status of the economy is to see where the smart people are putting their money. The business school at Pepperdine University in California surveyed 185 VC firms to see where they're been investing lately. The biggest winner in recent months has been, not suprisingly, software, a common favorite for venture capitalists. Software firms have collected 23.7 percent of all VC money lately.
Here's the top five:
Software: 23.7 percent
Medical devices: 13.4 percent
Biotech: 10.3 percent
Clean technology: 9.3 percent
Internet specific: 9.1 percent
It's interesting to see clean technology, which the Obama administration has made such a big show of supporting, garnering so much venture capital. Near the bottom of the list is pharmaceuticals, at 3.5 percent, financial services, at 3.1 percent, and consumer products, at 2.9 percent.
Pepperdine also asked the firms how many investments they were planning to make in upcoming months. More than half, 54 percent, said they planned to make three or more investments over the course of the next year. That's a lot of money that could be coming into the economy.
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