Monday, February 02, 2009

VCs nixing social networking startup investments - Massachusetts Biotech and Technology News and New England Local Business News

A timely reality check

“There’s so much money that’s going to be lost in that sector from a venture perspective that ‘Web 2.0’ is going to be a four-letter word — and it already is,” said Jo Tango, partner at Kepha Partners. Tango, a former partner at Highland Capital Partners, left Highland in 2006 to launch Kepha. He said problems with Internet investing are going to extend beyond the current downturn, as baby boomers retire and consumer spending dips.
“If you define Web 2.0 as consumer-driven business models, for the next 20 years I think it’s going to be tough sledding,” he said.

VCs nixing social networking startup investments - Massachusetts Biotech and Technology News and New England Local Business News

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