The Indian dotcom investment story
In 2006, VC forms are estimated to have invested over $32 billion globally - the highest VC investment in the last 5 years. With 27 investments worth $166 million versus 2 investments worth $17 million, Indian dotcoms too made a strong comeback in 2006.
An important aspect of the dotcom boom this time around, is the emergence of the Web 2.0 websites built around communities, generally stressing on user-generated content. According to data from Ernst & Young and Dow Jones VentureOne, $844.4 million was invested in 167 Web 2.0 companies in 2006 - twice the money and deals in 2005. The median size of a Web 2.0 deal on a global basis was $5 million, compared to $3.3 million in 2005.
While there is a lot of talk that the boom this time is based on fundamentals, given the talk about a global slowdown, I wonder how far the promises would materialise.
Source: Business Today
Filed under: India, Statistics