There’s a great deal of Chicken Little reporting occurring today about how the Web 2.0 sky is falling. Why? Because apparently, according the Dow Jones, the investments in Web 2.0 technology in the Silicon Valley are down, year over year.
Silicon Valley remains the hotbed of Web 2.0 activity, but the hipness of start-ups with goofy names is starting to cool in the face of economic reality.
Not shocking news, I realize. But I think they buried the lead.
Even the venerable Wall Street Journal puts the news in the very last sentence of their piece:
“It’s clear that the real growth in the Web 2.0 sector is happening outside of the (San Francisco) Bay Area,” says Jessica Canning, director of global research for Dow Jones VentureSource.
And there’s the real story. That’s the real news. Not that the investments in the Valley are down, but rather, that the investments elsewhere are up. In some cases, way up.
In our own Pacific Northwest, for example, the number of Web 2.0 oriented deals more than doubled. And the amount of the investment? It’s up 400% from $35 million in 2006 to $140 million in 2007.
That’s about as opposite of “waning” as I can come up with.
And we’re not alone.
Investment amounts in New England doubled, Southern California nearly tripled, New York metro nearly tripled, Southeast doubled, Mountain more than quadrupled, and North Carolina, alone, tripled.
In fact, the only area besides the Valley that went down was Texas.
So has Web 2.0 peaked? I honestly don’t know.
From what I’ve seen, it’s going pretty strong here in the Silicon Forest. And it’s clearly picking up speed in other sectors.
Maybe the better question is: Has Silicon Valley peaked?
[…] Earlier this week, I tried to shoot a hole in news that the “Web 2.0 sky is falling” by highlighting that Web 2.0 investments may be down in the Silicon Valley and Texas—but Web 2.0 venture amounts are up practically everywhere else, including the Silicon Forest. […]
Yay! for the Portland tech scene. We rock. No waning here 🙂
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