Venture Capital for Internet Boom
The alluring prospect of finding the next Facebook, LinkedIn or Twitter is driving the biggest rush of venture capital into the Internet start-up arena. The dot-com mania which first boomed and then fizzled more than a decade ago is catching up again in terms of venture capital investments.
Data from Thomson Reuters Deals Intelligence shows that a staggering $5 billion of venture capital investment flowed into young web companies globally in the first four month of the year 2011.
The venture capital inflows are still small when compared to the $55 billion deployed in the year 2000 to nascent technology firms, but 2011 is expected to be the busiest in terms of investments since 2000.
The latest frenzy bears some resemblance to the previous web investment craze — excitement over "concept" start-ups yet to launch their sites.
