An interesting debate broke out online this weekend over what kind of startups venture capital firms are most interested in investing in. While not directly related to music, it’s still well worth a read. Union Square Ventures’ Fred Wilson – who has invested in several startups – wrote a blog post suggesting that it’s currently harder for consumer internet companies (both web and mobile-focused) to both get funding, and breakout to a scale that would normally get that investment. “We are seeing fundraising challenges everywhere, even in our very best portfolio companies,” he writes, suggesting that larger VC firms are increasingly focused more on enterprise startups, not consumer/web/mobile. However, fellow investor Dave McClure of 500 Startups reckons that “most VCs switching from consumer to enterprise are clueless about why they’re doing so”. He’s bullish: “Consumer and small business internet opportunities are FAR from ‘over’, and any such commentary is foolish, narrow-minded, and simply dead wrong.” A debate worth following in the coming days.

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