Web2.0 investment spiralling upwards

By September 26, 2006 4 Comments

Fred at A VC and Val at alarm:clock both posted on the recent Venturesource data which shows that in H106 $262m was invested in 49 web2.0 companies in the US.

Their perspectives differed – Val felt it wasn’t much out of a total of $13bn.  Fred was ambivalent – web2.0 is a hot space after all.  My reaction was worse – this worries me a bit.

There were 51 web2.0 deals in the whole of 2005 and now 49 in H106.  This is still a young sector – there have been a couple of big trade sales and no IPOs thus far – and if this growth rate continues we will surely end up over-funded.  And lets not forget the large number of start-ups that won’t have made the venturesource list because they only took friends and family money.

By way of evidence I was looking into social bookmarking today and found this list of over 200 social bookmarking sites.