What Bubble? VCs Still Pouring Money Into Web 2.0
Recession? Slowdown? Bubble? Whatever? VCs are still investing in the Internet. According to Dow Jones VentureSource (NWS) and Ernst &Young, VC investment in information services more than doubled y/y in the first quarter to $1.59 billion. The number of deals also rose 38%. This was during a quarter when total investment was down 8% y/y and down 9% from the fourth quarter of 2007.
The WSJ, summarizing the two reports, insists that Web 2.0 is hot as well as cleantech and mobile. But the money isn’t necessarily flowing into American companies. The interest in tech is particularly focused on the growing number of Internet users in countries like Brazil, China, India and Russia.
See Also: Still a Bull Market For New York Venture Capital Funding




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