WSJ: Venture Cap For Apps Slow

The Wall Street Journal has an interesting article about how the economic downturn has affected venture investment in mobile application startups (hint: adversely).

According to the WSJ, the bankers in charge of venture firm Kleiner Perkins Caufield & Byers’s $100 million iFund–which was announced to tremendous fanfare about a year ago–have only put money into five startups, one of which is games publisher ngmoco:

‘We tell developers, we’re not interested in funding lifestyle apps, or a garage business of one or two people,’ says Matt Murphy, the Kleiner partner who oversees the iFund, which has so far backed five application companies. ‘We’re looking for apps with proven traction… This is not a grant fund.’

However, the article goes on to say that venture pitches from entrepreneurs are still coming in steadily, and that the iFund plans to invest in another four or five new startups in 2009. Kind of amazing, considering how terrible the economy really is at the moment.

[from the WSJ]

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