Thursday, 18 November 2010

Investing in technology


From the individual to the largest organization, everyone today has to make investments in information technology. Technology is a sector well suited to venture capital investment, as it offers the potential for high growth and high returns.

There are various ways to invest in the technology area. Some brokerage houses do offer technology index funds that include a cross section of technology companies. The other method is simply to pick stocks from the technology sector that offer sustained growth, good value and potential for the future. Investing in Technology Stocks has been considered as high risk.

The list of products and services in the pipeline of small, medium and large companies is astounding. Within the field of technology is the corner stone of all the products is security software and services.  

The specific areas that appear in my opinion to be situated well for future growth are in

  • health care related stocks,
  • multi-media and graphic software,
  • security software,
  • Networking and communication devices and specialized areas of electronics.
 There are other categories, but these areas of technology are poised for future.

   Businesses make significant investments in technology--purchasing software, computers, networking tools and other components necessary to stay current, drive business and sustain their competitive stance. For five years the Internet has developed, and firms have largely begun to adopt its technologies. A few firms have hit Internet technologies hard, developing substantial expertise in their internal value networks for using, developing, and marketing their capabilities with these technologies. Firms have moved forward with developing firm web sites, intranet-based knowledge management projects and client-centered extranets. 


Technology has made information more available than ever before. Indeed, health informatics is a field that focuses on using technology to improve our quality of health care. An index of health-care companies in the S&P 500 rose 0.8 percent.

Technological development in the mobile marketplace as a whole is fast-paced and with patients rapidly adopting smart-phone technology and applications in their personal lives, it is only a matter of time before they come to expect the same capabilities and speed of service when they access healthcare services too, whether public or private.

Boston based private equity and venture capital investment firm, Summit Partners today announced that it has invested $100 million for a minority stake in AVAST Software, makers of the world’s most popular antivirus software.

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