Venture Capital And Web 2.0
New VentureOne data released by Ernst & Young and Dow Jones shows that twice as much VC money went into Web 2.0 deals in 2006 compared to the previous year.
- $844.4 million globally was directed into 167 deals in 2006
- Web 2.0 investment has doubled every year since 2002
- Globally, the median pre-money valuation was $6 million for a Web 2.0 company in 2006
- In the US, the median pre-money valuation was $18.5 million
- In Europe, the median pre-money valuation was $7 million
- The median financing round globally and in the US was $5 million, and $6 million in Europe
Keep in mind that this is strictly Web 2.0 deals, because there was certainly more than $844.4 million invested by VCs last year.
Of course all this talk about pre-money valuation doesn't matter, because they say to not worry at all about your equity percentage. But JUST IN CASE you're curious, a median pre-money valuation of $18.5 million and a median investment of $5 million, means that the investors as a whole get a little bit over 21% equity stake on average... for a Web 2.0 company. Now if we could just figure out what the fuck "Web 2.0" means then we could all go home with a check in hand :D
Subscribe to feed
Francesco DeParis
May 16, 2007 - 3:47pm
Traditional Media Companies will become the new VCs
As unlikely as it seems from the outset, I think traditional media companies (TMC) will ultimately rule the web 2.0/New Media space. TMCs will surely become the next VCs.
Post new comment