Technology, Culture, Commentary on the Internet Revolution

Web 2.0 Investment Moving Offshore

by Mike Abundo on September 17th, 2007

Living outside the US, blogging with a company outside the US, and directing an industry association outside the US, I’ve been seeing more and more Web 2.0 startups popping up even on far-flung tropical islands. A new study confirms what I’ve suspected for a while now: Web 2.0 investment is moving offshore.

In the U.S., investments in Web 2.0 were virtually unchanged from the first half of 2006, with 67 deals and $357 million invested.

Globally, investors pumped a record $646.2 million into 101 deals worldwide in the first half of the year. Within Europe, the United Kingdom posted the most activity, with a record seven deals accounting for $22 million invested. Belgium, Ireland and the Netherlands each saw their first Web 2.0 deal completed in the first six months of 2007, the survey found.

From 2002 to 2006, some 40 percent of Web 2.0 deals were located in the Bay Area. That figure dropped to just 20 percent during the first half. Even New England drew more money for Web 2.0 deals than Silicon Valley, according to the survey.

I can personally attest to the sheer number of untapped Web 2.0 mavens and ideas outside Silicon Valley. All business is going global, and emerging business is no exception. Smart money should go the same way.

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POSTED IN: Investment, Web 2.0