Where are the jobs now? Better to open a restaurant, wow.

24. October 2011 by admin.

Ten years after the peak of the bubble, only one in six of the high-tech companies founded in 2000 still survive, and only one in three of the jobs created then still exist, according to a new study by the U.S. Bureau of Labor Statistics. Internet-related startups, the darlings of Wall Street, fared even worse: Only 8 percent, or about one in twelve, survived.

But all new businesses have a terribly high failure rate, don’t they? Not exactly. In the six-county San Francisco Bay Area, it turns out that about 30 percent of businesses started 10 years ago are still around, a survival rate that’s nearly double that of high tech, says Amar Mann, chief regional economist in the bureau’s San Francisco office. “You would have done better to open a restaurant,” he says.

In the first nine months of last year, venture capital firms invested $383.6 million in the mobile industry. But in the same period this year, funding dropped by 57 percent to $163.2 million, according to the National Venture Capital Association (NVCA) and Thomson Reuters. Moreover, mobile funding has slowed every quarter this year, from $81.8 million in the first quarter to $55.6 million in the second and $25.7 million in the second.

article by Bill Snyder of Infoworld

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