Melissa Frederick, The Examiner
2007-12-17 08:00:00.0
Current rank: Not ranked

WASHINGTON -

Wireless companies, green technology firms and network security outfits are among the sectors likely to be attractive to venture capitalists during 2008, according to a panel of investors.

The wireless industry was the most talked-about sector when a group of six venture capitalists got together Friday in McLean to discuss projections for investing in technology companies next year.

“I think this market will change more in the next five years than any other technology sector,” said Mark Ein, founder of Venturehouse Group LLC.

What will be driving the change, according to Ein, is that some wireless carriers such as Verizon have announced they will open their networks and allow them to be used for new applications, particularly data-oriented functions.

He believes that will drive entrepreneurial activity, though it is not clear whether that will mean a large number of new startup companies or existing companies entering the industry.

Network security, which has been a popular sector for investment for some time, will continue to be so in 2008, venture capitalists said.

Jonathan Aberman, managing director of the Amplifier Fund in McLean, said he thinks the sector with the most promise is clean technology.

That sector, however, requires patient investors not expecting an immediate return, he said — because the U.S. regulatory environment for the industry is still undefined. The panel said a recession could hurt venture capitalists’ ability to profit.

But Aberman said it can be a good time to start a new company because workers might not demand as high a salary, and real estate rates for setting up offices might be less expensive.

melissa.frederick@dcexaminer.com