Benjamin Kuo’s Blog

Ernst & Young and Dow Jones VentureOne released numbers today on Web 2.0 investments in 2006, finding that 2006 investments in Web 2.0 doubled over 2005 — however, a lot of attention is also being given to a post by venture capitalist Peter Rip, titled “Web 2.0 - Over and Out“. Rip points out some traffic numbers showing web traffic trends (and dropoff) to Web 2.0 media sites like Techcrunch, Gigaom, and Technorati, and states:

Many of us in the VC community have been quietly wondering about the state of Web 2.0 innovation. We aren’t seeing much. Startup activity remains strong, but the consumer web landscape seems to be populated with the same bodies with different skins.  Another video deal here; another social networking deal there, and social [feature] everywhere.

Interestingly enough, I remember this happening back when online pet stores were the rage during the Internet boom. Fortunately, the majority of venture capitalists herein Southern California lived through (and have the scars from) last boom/bust cycle, and seem to so far avoided the herd mentality which seems to permeate Silicon Valley.

This entry was posted on Wednesday, March 21st, 2007 at 4:34 pm and is filed under Venture Capital. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.