2005 VENTURE CAPITAL WEB 2.0 INVESTMENT STATISTICS: US ENTREPRENEURS RAISE TEN TIMES MORE THAN EUROPE

Boutique investment bank First Capital used the quiet holiday period to produce some research on venture capital investment into Web2.0* The highlights have been released today and here the author explains some of the principal fndings…

By Paul Fisher

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We have used the traditionally-quiet holiday period to keep ourselves very busy running some research on venture capital investment into Web2.0*.

Why did I want to run these numbers?

It is obvious to me that there is a high interest-level amongst European VCs in the sector, yet I was seeing a very low level of Web2.0 “done deals” in VC portfolios and on the deal sheets.

Furthermore, when we ran our Web 2.0 European event, we noted an under-supply of European entrepreneurs with compelling Web2.0 businesses.

So I was expecting the stats to show low levels of investment into Web2.0 companies in European compared to the US. However the discrepancy was even greater than I had expected...

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Continue reading First Capital’s principal research findings here:
http://paulfisher.typepad.com/growth_technology_venture/2006/01/2005_venture_ca.html

About the Author:
Paul Fisher is Associate Director of First Capital (www.firstcapital.co.uk), the boutique investment bank, and has a particular interest in companies in the following sectors: Web 2.0; Media technology; Analytics; Web-based models; Signal processing software. His blog can be found at http://paulfisher.typepad.com/