I retired from personal blogging in July 2008 but you can find me over at blog.xero.com
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From the Mercury News: Report shows $262.3 million invested in first half of year
Union Square and many other firms continue to look for new Web 2.0 start-ups.
That’s in part because Web 2.0 companies tend to need less money than other start-ups and are thus less of a risk. According to VentureOne, Web 2.0 firms raised an average of $4.4 million per deal in the first half of the year; the median for all venture financings was $7.5 million per deal.
Unlike some predecessors that famously blew through millions of dollars on television promotions and other marketing, Web 2.0 companies also tend not to spend much, if anything, on advertising, relying heavily on word-of-mouth promotion.
It’s interesting that Web 2.0 has been associated with relatively low cost as entrepreneurs get smarter about getting their message out. That means that investment is primarily in people, and in people that can build great operational systems to support their relationships with customers and partners.
Execution ability will define success even more than expected.
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