If you ask Wally Rhines, CEO at Mentor Graphics, about concerns that there has been too little disruptive change and, therefore, too little high-profile investment in the EDA industry over the last several years, he says: “It true that startups always like to see a spike up in growth.
“However, the biggest companies would like to see something closer to steady growth. Volatility is not as good for the bigger companies as it is for the smaller companies.”
If you ask: “But how viable is a high-tech industry when there’s no increase expected in VC funding for the foreseeable future?”
Rhines replies: “Yes, it’s true. VC funding in EDA has declined over the last 10 years, with the money often going instead into social networking. There is still ongoing investment today in EDA, however, but it’s angel funding, not VC funding.”