VC are betting on Web 2.0 Start-ups

Reports show that first-quarter investments in Internet companies doubled from a year ago.

This equals around $1.58 billion in over 170 deals. The amount invested was up 50%compared to the previous quarter. The investments were mainly tied to web 2.0 start-ups. 

 

This marks a trend-as overall VC investments have declined. Even though they are banking on web startups- its a gamble as the economy still plays a large role in their success too.  The good thing about web start-ups is that they generally require smaller investments - even in a tough economy. Betting on web start-ups allows VCs to spread their investments while gaining more exposure.