Google

Tuesday, January 9, 2007

news

A growing number of Web 2.0 startups are going under, laying off employees, and failing to raise second or third rounds of funding.In the first three quarters of 2006, venture capital poured $455 million into Web 2.0 startups. This accounted for nearly a third of all venture backing, according to Dow Jones VentureOne and Ernst & Young, and was a key driver of growth.But with a weak IPO market and only a handful of notable acquisitions, venture capital firms are starting to pull back. Job cuts at various Web 2.0 startups indicate that second and third rounds aren’t coming as quickly as some might have expected, or hoped.

No comments: