Monday, September 17, 2007

Web 2.0 Investments In Bay Area Flatten

Dow Jones VentureOne and Ernst & Young are reporting today that Web 2.0 investments in the San Francisco Bay Area have flattened, as activity has shifted to other areas and overseas. The two released a report saying that U.S. investment were virtually unchanged from the first half of 2006, with U.S. venture investments in the Web 2.0 sector totaling $357M, with 67 deals. Globally, there were 101 deals investing $464.2M total in Web 2.0 companies. Locally, the Bay Area had 25 deals, accounting for $91M in investment for the first half of the year. Dow Jones VentureOne and Ernst & Young said most of the U.S. deals completed in the first half of 2007 were "Enterprise 2.0" area companies. focused on business functionality. The two most active investors for Web 2.0 so far for 2007 were Sequoia Capital and Draper Fisher Jurvetson.