I just read this
post from Venture Beat. In summary, venture capital investments into “Web 2.0”
Internet companies this year are on track to double last year’s levels to about
$500 million.
For those of you unfamiliar with Web 2.0, Wikipedia defines it as follows: a
supposed second-generation of Internet-based services -- such as social networking
sites, wikis, communication tools, and folksonomies -- that let people
collaborate and share information online in previously unavailable ways. eBay,
craigslist, Wikipedia, del.icio.us, and Skype are common examples of Web 2.0
companies.
Analysts, including myself, think that Web 2.0 is here to stay. The question
is whether the space will be overfunded like the dot-com space was a few years
back. The good news is that the social and technological advancements
associated with Web 2.0 can be leveraged by nearly all firms to give them a
marketing advantage. For example, any e-commerce site can now add comment and
product review sections which make their sites more valuable.
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