Is venture capital’s love affair with Web 2.0 over?

The worst thing that happened in these last couple of years is that damn versioning of what is a simply the broader continuum of the evolving web. Define web 2.0… just try it and you will see the futility.

What is coming to a close is the notion that all online services need to be free and paid for with advertising; there are too many startups that are dependent on a business model that has yet to prove itself for tech companies.

VCs will still fund these deals and Valley pundits will gleefully predict the next Twitter, but the fact remains that most startups simply die, some get acquired for nothing, and the rare few go on to great success. No different here, move on people… nothing to see.

I am waiting for venture investors to once again discover that there is money to be made in enterprise software.

Silicon Valley remains the hotbed of Web 2.0 activity, but the hipness of start-ups with goofy names is starting to cool in the face of economic reality.

Dow Jones VentureSource on Tuesday released numbers of venture capital activity in Web 2.0 companies and declared that the “investment boom may be peaking.”

[From Is venture capital’s love affair with Web 2.0 over? | Tech news blog – CNET]

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