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Web 2.0 startups raised $ 262.3 million in venture capital investment

The research division of Dow Jones, the company VentureOne , has published a review of the activity of American venture capital investors for the first half. 2006 ( PDF and XLS ). For this segment, Web 2.0 startups managed to attract $ 262.3 million investment.

Although this is a relatively small part of the total investment (13 million), it is growing at the fastest rate. In total, 49 Web 2.0 startups received venture capital investments. For comparison, for the entire last year 51 such companies were financed in the amount of $ 199.1 million. Thus, this year the financial injections in Web 2.0 should more than double.

Since the surge in venture capital investment arises precisely on the wave of interest in Web 2.0, financial analysts have developed a special classification in order to isolate such startups from the total mass of Internet companies. In the terminology of VentureOne, Web 2.0 startups develop web services with dynamic interfaces that encourage user participation in the system (including through the publication of amateur content), encourage the formation of social networks and collaboration. Such applications include podcasting, tag-based systems, blogs, social networks, mashups, and wikis. Ajax, RSS, SOA, CSS, XHTML, Atom, and other technologies are used to create interactive applications.

The average amount of a single round of investment in Web 2.0 startups is $ 4.4 million. This is much less than the normal amount of investment in other startups (more than $ 7.5 million).
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Experts believe that it’s too early to talk about the new dotcom boom: none of the start-ups that received funding are planning an IPO, and only a few, including MySpace , have become the target of the purchase. But there are still some signs of a boom. First, the volume of investments has been growing rapidly since 2002. Secondly, the share of investments at zero (seed) and the first level of development of startups this year was 65%, and last year there was even more - 75%. We are talking about companies that have almost nothing but a business plan .

Only half of startups (25 out of 49) at the time of receiving investments yielded income, and only three were profitable. Last year, not a single generation of the Web 2.0 generation that received funding was profitable.

Most of the startups that received funding this year (27) are declared as mass services for a wide range of users. Among the largest deals are financing of the social network Facebook for $ 25 million in the second round and Zimbra office applications for $ 14.5 million in the third round (later stage).

The most active investors in Web 2.0 this year are Accel Partners , General Catalyst Partners and Draper Fisher Jurvetson . If you take into account the last five years, then you can add to them Sequoia Capital and Omidyar Network .

Invest in Web 2.0 (US)
2001: 7 companies, $ 36.2 million;
2002: 4 companies, $ 12.25 million;
2003: 13 companies, $ 70.3 million;
2004: 21 companies, $ 193.6 million;
2005: 51 companies, $ 199.14 million;
I floor 2006: 49 companies, $ 262.28 million

Source: https://habr.com/ru/post/4448/


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