Dow Jones VentureSource is reporting today that the Web 2.0 investment boom may be peaking. According to the firm, there has been a record $1.34B invested in 178 Web 2.0 deals in the U.S. in 2007, up 88% from 2006. However, Dow Jones found that the results were significantly bolstered by the $300M investment in online social networking site Facebook, which represented 22% of all funding into Web 2.0 companies in 2007. Among other data released by Dow Jones was a slowdown in deal growth, with a 25% increase in the number of deals between 2006 and 2007; compared with the growth shown between 2002 and 2006, when the investments in the sector doubled every year. Regionally, Dow Jones counted 14 deals and $115M in investments in Southern California for 2007, up from 10 deals and $41M in investments in the area in 2006.
Top NewsTuesday, March 18, 2008
Web 2.0 Investments Jump, But May Be Peaking