Ann Winblad of Hummer Winblad Ventures argues that there has been a steady dealflow in venture capital from 2002-2004. The software sector is still the big leader, though biotech is catching up. Though she doesn't discuss outsourcing, Winblad emphasizes that a company must consider where they can get the best intellectual capital. Today, company strategy starts globally. She also discusses trends in the software market, including open source material, Moore's Law (storage is free) and Metcalf's Law, and mergers and acquisitions.