Sunday, May 9, 2010

A machine vision venture capital case study

The machine vision world tends to be rather entrepreneurial. Barriers to entry are low and every “Vision Guy” seems to have a business plan in his back pocket. Why, there have even been times when I have considered launching my own vision business, though when that happens I lie down in a dark room until the feeling goes away.

This however is why I found “
Why Venture Capitalists Don’t Like to be Rushed into Deals” an interesting read.

The article, from the WSJ Venture Capital blog, describes how a smart guy with an idea for a 3D scanning system managed to score a sizeable VC deal to bankroll his start-up. The whole story is an interesting case study, but I particularly appreciated the glimpse into how Venture Capitalists view machine vision: “I wasn’t particularly excited about the machine vision idea. I didn’t think the market opportunity was large enough and easy enough to access quickly,”

That’s definitely one of the problems we face: machine vision is still something of a niche industry and as such will struggle to attract VC funding the way some big internet companies have been able to. All the same, it’s good to learn more about how those guys work.

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