The National Venture Capital Association , together with
PricewaterhouseCoopers and
Thomson Financial , published
statistics on venture capital investments for 2006. This year, the total amount of funds invested in startups has grown by 12%. This was also due to the Internet start-ups sector, which fully recovered after the crisis, market analysts say.
Internet startups received
$ 4 billion last year, which is 25% more than in 2005. This is the maximum investment since 2001, when $ 10.2 billion was invested in the Internet.
In terms of investment growth rates, the Internet can only be compared with biotechnology (+ 17% per year) and the alternative energy sector (more than doubled).
The total investment in startups was 3,416 transactions and $ 25.5 billion. Of course, the crazy level in 2001 is still very far away. Then the Internet fever pulled out of the pockets of investors $ 40.7 billion. However, the crisis of 2002-2003. also left behind, and now you can carefully talk about the beginning of the second dotcom boom. Of course, for now this is only a pitiful similarity to the first boom, but who knows what will happen next?
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If venture capital investments in Internet start-ups will continue to grow by 25% per year, we will reach the level of the dot-com boom ($ 10.2 billion) in four years. However, this may not happen, because investors are now much more cautious. For example, well-known financier Tim Draper says that he is immediately alarmed as soon as he hears “Web 2.0” or some other buzzword.
In the days of the first dotcom boom, in 1999–2001, startups entered the stock exchange and issued shares less than three years after the date of their foundation. It was very beneficial for venture investors who quickly increased their capital (and invested it again). Now, the average time between starting a startup and issuing shares is five to seven years. Among Web 2.0 startups,
no one has yet entered the market.
In Russia, the flow of petrodollars stimulates investment in dotcoms, and here the growth is even greater than in the US. Last year, the volume of transactions with Russian Internet companies amounted to about
$ 1.5 billion .