Are Web 2.0 Entrepreneur’s Love Affair with Venture Capital Over March 18, 2008Posted by John in Technology.
Tags: entrepreneurs, silicon valley, startups, venture capital
Cnet has a story headline “Is venture capital’s love affair with Web 2.0 over?”– Ironic??
According to this massive trend 2007 deals are down an amazing amount – total deal numbers down an amazing 5. “Web 2.0 deals in the Bay Area actually dropped from 74 deals in 2006 to 69 last year” -Wow.
Entrepreneurs are starting companies that require less capital and no venture capital at all. Maybe entrepreneur’s love affair with venture capital is over. It’s clear to me that entrepreneurs that I talk to are bootstrapping longer and financing ventures themselves.
I hardly think that a reduction of 5 deals validates a venture capitalist trend. Most VCs are not that savvy on Web 2.0 and are generally skeptical on web deals. The ones that do get it are doing many deals. Jeff Clavier has already pounded out 16+ deals in his new fund.