Venture Capital Company Likes Internet Startups
Over a decade since the dot.com mania of the first internet bubble boomed and faded, and venture capital is once again rushing back to internet startup companies in the hope of finding the next Facebook, Groupon or Twitter. More than $5 billion of venture capital investment flowed into nascent internet companies in the first four months of this year alone.
This is still small compared to the boom years, but it is more then any year since 2000, right before that bubble burst. The latest frenzy does bear some similarities to the previous web bubble, including exuberance over "concept" start-ups that have yet to launch sites and intense competition among backers to place bets in hot areas like social media. Entrepreneurs say they are enjoying more leverage with investors and that they have their pick of potential backers. Many that aren't even seeking to raise funds are seeing the VC's knocking on their doors with propositions.