Kellblog

This blog is written by Dave Kellogg, CEO of MarkLogic Corporation, covering next-generation information management, enterprise search, and content management technologies along with commentary on Silicon Valley, venture capital, and the business of software.

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Web 2.0 Investment Analysis

November 25th, 2006 · 1 Comment

I found a great piece on VentureBeat that analyzes venture capital investment in Web 2.0 companies. They provide this definition for what they consider a Web 2.0 company:

“Companies included in this study have a business model that revolves around a dynamic interface facilitating participation through such methods as user-created content, networking, and collaboration. Applications used include podcasting, tagging, blogs, social networking, mashups, and wikis. Technologies used in these applications include: AJAX, RSS, SOA, CSS, XHTML, Atom, and rich Internet applications.”

Of note:

  • $455M of total investment during the first nine months of 2006
  • 79 deals in the first nine months of 2006
  • Top three VCs investing: Draper Fisher, Benchmark, and Sequoia
  • Mean first-round valuation of ~$5M
  • Mean valuation for companies shipping product of ~$14M

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